In a proactive move to regulate the retail price of wheat and atta (flour), the Government of India has initiated a market intervention strategy through the Food Corporation of India (FCI). Under this initiative, the FCI is conducting weekly e-auctions for the sale of wheat under the Open Market Sale Scheme (Domestic), OMSS(D), at a reserve price of Rs. 2125 per quintal. This pricing aligns with the current Minimum Support Price (MSP) for wheat.
The FCI has made 2.00 lakh metric tonnes (LMT) of wheat available in each weekly auction, spanning over 480 depots across the country. As of September 21, 2023, a total of 13 e-auctions have been carried out during the 2023-24 fiscal year, resulting in the sale of 18.09 LMT of wheat under the OMSS(D) scheme.
Notably, the weighted average selling price of wheat during August 2023 stood at Rs. 2254.71 per quintal. However, in the e-auction conducted on September 20, 2023, this figure decreased to Rs. 2163.47 per quintal. This downward trend in the weighted average selling price of wheat indicates a cooling effect on market prices in the open market.
Furthermore, it is worth highlighting that in each of the weekly e-auctions conducted, the quantity of wheat sold has not exceeded 90% of the quantity offered. This statistic underscores that there is an ample supply of wheat available across the country.
The successful implementation of the OMSS(D) policy has achieved two crucial objectives. Firstly, it has effectively kept the prices of wheat in check within the open market, preventing any unreasonable spikes. Secondly, it has ensured a substantial stock of wheat in the central pool. This strategic stockpile will enable the continuation of the OMSS(D) policy for the remainder of the 2023-24 fiscal year.
The OMSS(D) scheme, as evidenced by its performance, plays a pivotal role in achieving these objectives while ensuring the availability of wheat and atta to all sections of society at reasonable prices.
