The Union Government is all set to offload 50 lakh metric tonnes (LMT) wheat and 25 LMT rice in the open market via OMSS (Open Market Sale Scheme) to curb rising prices of cereals in the retail market. The government has also reduced the reserve price of rice from Rs. 31/kg to Rs. 29/kg to increase availability for consumers.
Food Secretary Sanjeev Chopra said that despite the sale of both the cereals in the open market under OMSS in 2023-24, only 8 LMT wheat was liquidated in the 7 e-auctions conducted so far and only 1,900 tonnes of rice was taken up despite 15 LMT wheat and 5 LMT rice offered till now.
Noting a rise in average prices of wheat and rice, the Secretary said that rice's offtake wasn't up to the mark and the government hopes to reduce food inflation with these measures even as the reserve price for wheat remains unchanged.
While the announced measures will be reviewed periodically in an internal weekly review meeting every Wednesday, the Secretary assured that India has adequate stocks of wheat, rice and sugar.
The Food Secretary said that the decision may also lead to a fresh sale of cereals by some big farmers and hoarders who were waiting to dispose stocks in the market. FCI Chairman said that even after the fresh market intervention, the government will have an additional 87 LMT of wheat and 270 LMT of rice available apart from requirement for PDS and other schemes.
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