Government allows sale of wheat from FCI godowns in open market

NEW DELHI: Government will sell wheat in open market from Food Corporation of India's ( FCI's) stock as part of its measures to keep prices under control.

Earlier this month, the government has decided to release additional 50 lakh tonnes (LT) of rice to BPL and APL families through public distribution system ( PDS) in those states where food security law is not implemented.

The government will offer wheat for open market sale from central pool, Food Secretary Sudhir Kumar has tweeted.

The open market sale scheme (OMSS) was launched by FCI for sale of wheat from stocks above its buffer limits to the bulk consumers-roller flour mills.

The scheme was launched by FCI with a view to check wheat prices, which may go up during lean season and at the same time it will create storage space for fresh arrival of wheat.

During the year 2013-14, total 95 LT of wheat was allocated for tender sale from godowns of Punjab and Haryana to bulk consumers/small private tenders and 5 LT of wheat was allocated for retail sale to states/UTs/cooperatives.

The reserve price was fixed at Rs 1,500 per quintal. Later the government also allowed other states to sell wheat in the open market after adding freight charges from Ludhiana to concerned state capital, to the fixed base price.

As on July 1st this year, FCI has 398 LT of wheat in its godowns against the buffer norms limit of 201 lakh tonnes.