India to rollout quarterly open market sale for wheat after this year's procurement cycle

Government sources have told CNBC-TV18 that a quarterly open market sale (OMS) scheme is slated to commence for wheat after the completion of this year's wheat procurement cycle. The scheme is likely to be rolled out in June or July this year, after wheat procurement is completed by the end of May 2023.

The quantity of wheat to be sold under OMS will depend on its availability and price, even as the government expects 100 lakh metric tonnes (LMT) wheat to be available for OMS on April 1, 2024, over and above NFSA (National Food Security Act) and buffer stock requirements. The move to aimed to check the hoarding of stocks and the resultant panic which leads to a rise in wheat prices. However, the ban on wheat exports is expected to continue for now.

The latest OMS conducted by the Food Corporation of India (FCI) till March 2023 had witnessed the sale of 33 LMT wheat via e-auction, where over 31 LMT wheat was bought. Last week, the FCI assured that the wheat procurement for the Rabi Marketing Season (RMS) 2023-24 was progressing smoothly and better than last year, with 111 LMT wheat bought till April 19, 2023, compared to the purchase of 99 LMT on a corresponding day last year.