 "FCI eyeing Rs 10,400 cr from sale of wheat in open market")
In a bid to monetise its surplus wheat stocks, state-run Food Corporation of India (FCI) aims to realise more than Rs 10,400 crore by the end of current fiscal by selling its excess stock in the open market.
The FCI has so far sold close to 41 lakh tonnes of wheat in the current year.
"The wheat so far has been sold at an average price of Rs 1,605 per quintal. The corporation is aiming that by the end of current financial year the total sales will be around 65 lakh tonnes at the same price," a source said.
The average wheat selling price this year is marginally higher than last year's average price of Rs 1,602 per quintal.
As on January 1, the FCI's wheat stock was 74 % up at 240 lakh tonnes as against the 138 lakh tonnes required as per the buffer stocking norms on the same day.
It is unlikely that there will be shortage of wheat stock from these sale proceedings.
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Secondly, with the sale of these wheat stocks there will be enough wheat in the market so that prices remain under check, the source added.
A committee on FCI restructuring, led by former Food Minister Shanta Kumar, had observed in its report that during the last five years, on an average, stocks with FCI have been more than double as against the buffer stocking norms, costing the nation loss of thousands of crores of rupees without serving any worthwhile purpose.
The same committee had also suggested that a transparent liquidation policy is the need of the hour, which automatically kicks-in when FCI is faced with surplus stocks against the buffer norms.
It had also recommended greater flexibility to FCI with business orientation to operate in open market and export markets.