The Centre may offer wheat to the States at subsidised rates for further distribution in the market as part of its measures to cool down soaring prices of foodgrains. Besides, the other option could also be to sell wheat from the official reserves through tender.

“Both the options are open under the open market sales scheme,” said a senior official of the Food Ministry. However, he refused to disclose the timeline by when the open market sale of wheat would be announced.

Prices of wheat in some producing States have already topped ₹3,200/quintal due to the low availability of the grain. Flour millers, who mostly process wheat to produce sooji and maida, have been requesting the government to release at least 20 lakh tonnes (lt) from the Central Pool stock.

14% rise in retail price

However, sources said the government has priority to ensure that wheat from the official reserves go for ‘atta’ (raw wheat flour) making so that common people get the maximum benefit. There has also been a suggestion to restore the “wheat” quantity received through ration shops before the beneficiaries of the National Food Security Act (NFSA) were compulsorily told to take rice in place of wheat in some States, including Uttar Pradesh.

According to Consumer Affairs Ministry data, there was over a 14 per cent jump in wheat retail prices and over 18 per cent surge in atta (wheat flour) rates in 2022 calendar year.

Admitting that the government is aware of the rise in prices, Food Secretary Sanjeev Chopra last week said it would soon take measures to control the rates.

15-year-low procurement

Under the Open Market Sale Scheme (OMSS) policy, the government allows FCI to sell foodgrains, especially wheat and rice, at pre-determined prices in the open market from time to time to bulk consumers and private traders. The purpose is to boost the supply during the lean season and moderate the open market prices.

In February 2022, the Centre announced the OMSS wheat policy under which reserve prices were fixed – ₹2,200/quintal up to September 30 and ₹2,225/quintal during October-December. However, after wheat procurement dipped to a 15-year low of 187.9 lt in 2022-23 rabi marketing season (April-March), the government suspended the scheme in April.

The Centre banned wheat exports on May 13, 2022, to control prices after a slight fall in domestic production and a sharp decline in the FCI’s procurement for the central pool. But it has allowed export on humanitarian grounds and for diplomatic reasons to friendly countries on government to government requests.

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