Government unlikely to sell wheat in open market for now, says source
Informist, Wednesday, May 31, 2023
By Arunima Bharadwaj and Priyansh Verma
NEW DELHI - The government is unlikely to sell wheat under the open market sales scheme for now, a senior official in the Department of Food and Public Distribution said.
"There is no such situation that requires government to do open market sales immediately," the official told Informist. "But whenever any of the two situations arises – either huge stocks with the government or high wheat prices rise – the government can do open market sales of wheat."
In Feb-Mar, Food Corp Of India Sold 3.38 mln tn Of Wheat Under The Open Market Sale Scheme To Cool Rising Prices Of Wheat.
The government uses tools such as the open market sales scheme to regulate market prices and supply of key commodities, including wheat. Under the scheme, Food Corp of India sells food grains to bulk consumers and private traders at a pre-determined price in the open market.
As of now, the government has procured 26.2 mln tn of wheat, against an estimated target of 34.2 mln tn.
"We have sufficient quantity of wheat to distribute under the PDS (public distribution system). However, if a farmer comes to sell stocks, we will procure it," the official said.
Wheat stocks in the central pool were at 29.0 mln tn as on May 1, marginally lower than 30.3 mln tn a year ago.
In Feb-Mar, Food Corp of India sold 3.38 mln tn of wheat under the open market sale scheme to cool rising prices of wheat.
Wheat is currently being sold at 2,050-2,100 rupees per 100 kg in the benchmark markets of Kota in Rajasthan, lower than the minimum support price of 2,125 rupees, Kota-based trader Aniket Mehta said.
The government has pegged wheat output in the current crop year ending June at a record 112.7 mln tn, up 4.6% from 107.7 mln tn in 2021-22. End
