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The Government today approved the sale of 10 million tonnes of wheat from the FCI stock in the open market in order to boost domestic supply and check prices.
A decision in this regard was taken at a meeting of the Cabinet Committee on Economic Affairs (CCEA), headed by Prime Minister Narendra Modi.
“The CCEA has cleared sale of about 10 million tonnes of wheat via the Open Market Sale Scheme (OMSS) to bulk buyers,” sources said.
The reserve price under OMSS has been fixed at Rs 1,500 per quintal plus freight charges for old crop and five per cent premium for new crop, the sources added.
Wheat would be sold through the e-tendering process by the State-run Food Corporation of India (FCI) with an aim to improve domestic supply of wheat and check prices, besides reducing storage pressure on FCI.
Wheat prices have firmed up in the last few days.
The wholesale price of wheat has increased to Rs 19 per kg in the national market in July, from Rs 16.10 per kg in the same month last year, according to official data.
In 2013-14, the Government had announced sale of 8.5 mt of wheat via OMSS, but was able to sell only 5.8 mt, earning about Rs 9,310 crore.
Till early this month, the FCI had a wheat stock of 40 mt, against the requirement of 20 mt.
The country had produced a record 95.60 mt in the 2013-14 crop year.
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