The Food Corporation of India (FCI) is set to offer a higher quantity of wheat for sales in the weekly e-auction from about 2 lakh tonnes (lt) currently, with the sole aim of controlling prices, which have been continuing to increase in retail market since June.

India is the world’s second-biggest producer and consumer of wheat and has been facing issues with production for the last two years when consumption has been rapidly growing with changing food habits. The Food Ministry has been trying to contain wheat prices in view of the current festival season and the upcoming assembly polls to be held in five States.

“Wheat will be released gradually under the open market scheme (OMSS) as the FCI has sufficient stock. Going forward, the weekly auction quantity will be raised,” said Ashok Kumar Meena, Chairman and Managing Director of FCI.

‘No shortage’

“There’s no shortage of wheat in the country and all options are open for the government to control prices,” Food Secretary Sanjeev Chopra said.

Addressing the annual general meeting of the Roller Flour Millers Federation of India, Meena asked millers to improve storage capabilities and processing to reduce wastage. He said as the government handles 20-26 per cent of the wheat production and the rest is managed in the private sector, there is a need to procure more by millers and store the grains to meet their annual requirement.

The average all-India retail price of wheat this month (Sept 1-25) was ₹32.63/kg and for atta (wheat flour) it was ₹38.07/kg, both up by 6 per cent from the year-ago period, official data show.

Procuring millets

Chopra said the government has been taking steps to correct the estimates on production by utilising technologies and the results will be visible in next two-three years. Further, the Food Secretary informed the gathering that by targeting to procure and distribute 28 lt of millets during 2023-24 (October-September), the pressure on demand for wheat under the public distribution system will be eased.

As a part of inflation management, the Centre on September 14 lowered the wheat stock limit to 2,000 tonnes with immediate effect from 3,000 tonnes. It also assured that enough stocks of rice and sugar would be available to meet the festival demand. Stock limit for wheat was fixed at 3,000 tonnes on June 12, which will be valid until March 31.

The total wheat stock with the FCI was pegged at 255 lt against the 202 lt required under buffer norm as of October 1. Under the open market sales scheme, the government has already sold 18.09 lt of wheat in 13 rounds of e-auction since June 24.

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