The new decision of the government will affect the wheat market

11-Jul-2024 05:10 PM

New Delhi. The decision taken by the Central Government to sell wheat under the Open Market Sale Scheme (OMSS) is likely to have an impact on the domestic market.

This time the freight charges have not been included in the minimum reserve price of wheat. According to an analyst,

this decision of the government will help in controlling inflation. Wheat stockists were running with the notion of bullishness but the government has limited it to a limit by imposing storage limits.

Stockists will be forced to release their wheat stock in the market and the selling pressure on the Food Corporation will reduce.

It is estimated that big producers and rural traders have more wheat stock than last year and if prices stabilize or there is no possibility of further rise, then this stock can also gradually come to the market. In fact, for the last few months,

the wheat market has been going through a phase of uncertainty and traders / stockists are very scared of the government's ever-changing policies. No one knows when the government will implement which decision.

To overcome the crisis in the wheat sector, a reviewer has suggested deregulating or freeing the process of import and export.

This will help in increasing the supply and availability of wheat in the domestic sector and controlling prices.

If the government wants, it can take necessary steps to ensure protection of the interests of local producers.

According to the reviewer, if there is a possibility of importing from abroad at a much lower price, then customs duty can be imposed on it in a practical way.

There is no or negligible production of wheat in South India and flour millers face difficulty in meeting their requirements.

The millers and processors there either depend on the wheat of the Food Corporation or get it from the states of North India. A hefty import duty of 40 percent is imposed on wheat.