The Centre on Thursday announced that both wheat and rice would be sold from the government stock through e-auction every alternate week, which may commence after seven days. The Food Ministry also said that States would not be offered extra quantity of grains other than their entitlement under the National Food Security Act (NFSA) and other ‘Central’ welfare schemes.

Briefing media, Ashok Kumar Meena, Chairman and Managing Director of Food Corporation of India (FCI), said that unlike previous years, the government has decided to continue the open market sales scheme (OMSS) throughout this year for which adequate grains have to be provisioned. “This leaves little scope for providing additional grains to States,” he added.

Requirement to meet welfare schemes

“The annual requirement of the Centre to meet NFSA entitlement and other welfare schemes like mid-day meal is around 57.6 million tonnes (mt) – 39.6 mt of rice and 18 mt wheat,” Meena said. As on June 14, FCI has 57.39 mt of foodgrains comprising 26.51 mt of rice and 30.88 mt wheat. Besides, there are 15.43 mt of rice (in the form of paddy) are yet to be received by FCI.

“While wheat procurement is over and whatever quantity is there has to be managed for the entire year till March 2024 as the next crop will come in April, kharif rice procurement will start from October which will add to the Central Pool stock,” an official said. “It is difficult to estimate how rice procurement will be as paddy sowing has just begun amid deficient monsoon in many parts,” the official added.

On OMSS, Meena said FCI has estimated how much quantity of rice to be sold in open market which would be announced soon as preparation is on for its e-auction. Stressing that consuming States would be in focus while allocating wheat under e-auction, the first round may see an offer of sales between 0.3 mt and 0.5 mt.

He also said there will not be any possibility of hoarding the wheat after lifting from FCI as the lot size has a cap of 100 tonnes maximum per participant/entity, whereas it was 3,000 tonnes in last round of OMSS. The government last week announced that it would sell 1.5 mt of wheat in open market though e-auction in the first phase and decide additional quantity depending on its market price.

On wheat prices, Subodh Kumar Singh, additional secretary in Food Ministry, said that rates in mandis (market yards) have come down after the announcement of OMSS and imposition of stock limit. “Average mandi rate was ₹2,268/quintal on June 14, down from ₹2,302/quintal a week earlier. Similarly, retail prices have dropped to ₹29.01/kg from ₹29.17/kg and wholesale rates to ₹2,594/quintal from ₹2,603/quintal,” Singh said.

Apart from OMSS, the Government on June 12 also imposed stock limit on wheat to check further increase in prices saying mandi rates surged 8 per cent in a month.

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