With the Agriculture Minister, Government of India acknowledging in the parliament the plethora of foodgrains lying surplus with the various food agencies and recent verdict from the Supereme of India regarding distribution of grain to the needy to save from rottening, the states of Punjab and Haryana are likely to evacuate some of the 177 lakh tonne of the wheat stock lying in covered (45 lakh tonne) and open plinths (142 lakh tonne).
Since there are no takers for wheat during this part of the year due to the availability of wheat in the open market at a price (about Rs 1210 per quintal)lesser than the reserved price of wheat offered by the government agencies (Rs 1238 per quintal plus taxes and frieght charges).
The Ministry of Food and Consumer Affairs Government of India has very recently released instructions to the Food Corporation of India to allow private traders to buy wheat from the FCI depots. A total of 20.81 lakh tonne has been allocated for the OMSS (open market sales scheme). Out of that 16.69 lakh tonne has been earmarked for the bulk traders and 4.12 lakh tonne for the private traders. According to sources in the ministry another 20 lakh tonne can be allocated under this category.
The private traders can lift 3 tonne to 9 tonne per firm per depot per day and the bulk buyers can lift 100 tonne to 1000 tonne per firm per depot per day under OMSS.
The sources at FCI in Punjab and Haryana told that there has been no response under OMSS till now and is likely to remain tepid till September/October when the wheat available in open market will exhaust.
Punjab has shortlisted 39 depots (three depots per district) for the distribution of grain under OMSS scheme. Haryana would have about 20 depots for wheat distribution.
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But the traders and bulk buyers are concerned about the quality of wheat offloaded by FCI. "The millers would prefer to lift wheat from the open market as the stocks of FCI had a luster loss. The flour millers extract by-products of wheat and that is viable only if the wheat is of a good quality",said Naresh Ghai, President of Roller Flour Mills Punjab.
There has to be a strict monitoring system for offloading more wheat under Public Distribution System as it may also lead to diversion of grain in the open market, said one of the flour miller.
If the verdict of apex court is followed in letter and spirit this would help in utilising wheat stocks in the producing states and make room for the next crops.