With an aim to reining in rising grain prices and food inflation, the government has decided to lower prices of wheat for sale under the open market sale scheme (OMSS) by Rs 200 a quintal.
“The wheat price (under open market sale scheme) has been reduced by nearly Rs 200 a quintal from the price fixed earlier,” food and agriculture minister Sharad Pawar told reporters on the sidelines of a function here.
Asked if the price cut applies to both states as well as bulk consumers, Pawar said it had been done only for states. Under the scheme, the government had allocated to the states one milion tonnes wheat each during October-December and January-March for distribution to retail consumers through state governments. The price formula for this wheat was the minimum support price (MSP) at which Food Corporation of India (FCI) procured wheat (Rs 1,100 a quintal) plus cost of transportation, he said. The scheme, however, did not receive good response and the offtake by the state governments had been very less. There has been demand from states for supply of wheat at BPL rate (Rs 4.15 a kg).
Beside states, the government has earmarked one million tonnes for bulk consumers for the October-March period. Even bulk consumers, like flour millers, are demanding lower rates. The pricing mechanism, through which the bulk consumers are being offered wheat, includes MSP of wheat aong with additional carry forward, storage and freight costs. Till date, the government has managed to sell only 22,000 tonnes of wheat under OMSS this year.
