The Government of India has announced the Open Market Sale Scheme (OMSS) policy under which the reserve price of wheat has been fixed at ₹2,300 per quintal and the reserve price of rice at ₹2,800 per quintal. This time, the government has said that transportation costs will be added to the reservation price, unlike last year when there was one rate for the entire country.
The food ministry said, “The quantum of stock to be unloaded and the timing of e-auction may be decided by the Food Corporation of India (FCI) in consultation with the ministry, considering placing the stock at the relevant time. It further stipulated that only the surplus above the combined requirement for carrying out the National Food Security Act and other welfare schemes would be released without touching the buffer norms and the additional quantity of 2 million tonnes (MT).
stock on 1st july
Since the annual requirement of wheat under the Public Distribution System and other schemes is about 18.4 million tonnes, while the buffer norm as on April 1 is 7.46 million tonnes; The government will have to earmark the quantity for OMSS above 27.9 million tonnes. The central pool stock of FCI as on July 1, 2024 stood at 28.26 million tonnes of wheat and 48.5 million tonnes of rice (including 23.71 million tonnes of paddy in terms of rice).
“For mill owners, this move was much awaited and is welcome. But, this time the freight charges will be added, which the industry was demanding. Last time in northern states, OMSS wheat sales were lower as millers in the south were buying directly from FCI at the same rate,” said Rahul Chauhan of iGrain India. He said, due to uniform rate across the country, record sale of 10 million tonnes of wheat under OMSS during 2023-24.
Chouhan said the new policy will allow trade to function as freely as they were doing earlier and expressed hope that more quantity of wheat will come into the market thereby reducing the burden on FCI.
From 1st August?
However, some experts question the government’s decision as it was earlier claimed as an achievement under the One Nation One Rate slogan and now no justification has been given as to why it has been removed.
The policy also allows sale of wheat from FCI to Central Cooperative Organizations, such as NAFED, NCCF and Kendriya Bhandar, at ₹2,300/quintal for the purpose of direct sale to consumers under “India”. The Center also pays a subsidy of about ₹10 from the Price Stabilization Fund for selling these agencies. Flour At ₹275 per 10-kg bag.
While the OMSS policy will be valid till Match 31, 2025, the rice policy has been made with retrospective effect from July 1 and the wheat policy can start from August 1, if the government gives permission to FCI.