Centre reduces reserve price of wheat up to Mar 31 to check inflation

New Delhi, Feb 17 Aiming to check inflationary trend in the food economy, the Department of Food and Public Distribution (DFPD) has decided to further reduce reserve price of wheat up to March 31, 2023.

The reserve price under Open Market Sale Scheme (Domestic) has been fixed at Rs 2150 per quintal (pan India) for wheat and Rs 2125 per quintal (pan India) for wheat (under relaxed specifications) of all crops including Rabi Market Season (RMS) 2023-24 for sale of wheat to private parties.

States may be allowed to purchase wheat from Food Corporation of India (FCI) for their own scheme at above proposed reserve prices without participating in e-auction.

Officials said that reduction in reserve price will help in reducing market price of wheat and wheat products for consumers.

FCI will float third e-auction for sale of wheat at these revised reserve prices on February 17 which will be opened on February 22.

The Committee of Ministers decided to release 30 LMT wheat from FCI stock through Open Market Sale Scheme (OMSS). It included 25 Lakh Metric Tonnes (LMT) to be offered through the e-auction route to traders, flour mills, etc as per the usual process followed by FCI.

Bidders can participate in e-auction for a maximum quantity of 3,000 MT per region per auction, two LMT to be offered to State Governments for their schemes at 10,000 MT per state without e-auction and three LMT to be offered to Government PSUs and cooperatives such as Kendriya Bhandar, NCCF, NAFED etc without e-auction.

Subsequently, the Department made allocation of 3 LMT of wheat to Kendriya Bhandar, NAFED and NCCF as per their requisitions. Kendriya Bhandar, NAFED and NCCF were allocated 1.32 LMT, 1 LMT and 0.68 LMT respectively.

Further, the rate of wheat on February 10 has been reduced to Rs 21.50/kg for sale to NCCF, NAFED, Kendriya Bhandar and State governments as well as community kitchen, charitable NGO subject to stipulation that they will convert wheat to atta and sell it to consumers at MRP Rs 27.50/kg.

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