FCI to sell 10 million tonne wheat to bulk consumers this fiscal
07 May 2019
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Food Corporation of India (FCI) plans to offload 10 million tonnes of wheat on bulk consumers this fiscal in order to reduce its huge stocks that include carry on stocks of previous years.
State-run FCI is saddled with a wheat stock of 40 million tonnes has decided to sell the excess wheat stock at a base price of Rs2,080 per quintal for three main wheat-producing states - Punjab, Haryana and Madhya Pradesh, while for other states the freight charges at Ex-Ludhiana will be added to the base rate.
FCI, the government’s nodal agency for food grain procurement and distribution, will sell wheat through an e-auction under the open market sale scheme (OMSS) throughout the fiscal except during procurement period in wheat growing states, it added.
“Quantum of sale of wheat has been fixed at 100 lakh tonne. It may, however, be reviewed by the Department of Food and Public Distribution, if offtake is more,” the food ministry’s order said.
The base rate will be increased by Rs55 per quintal in the subsequent quarters of the fiscal, it said.
FCI’s current wheat stock of over 40 million tonnes includes old stock of 16 million tonnes (till 1 April) and 24.2 million tonne of new grain from the ongoing procurement, as per official data.
The agency has set the wheat procurement target at 35.7 million tonnes for the 2019-20 marketing year (April-March) on hopes of a record 100 million tonne production this year.
According to traders, wheat prices are ruling below minimum support price of Rs1,840 per quintal currently. The base rate offered under the OMSS for this fiscal is much higher than the MSP and also from the last year’s base rate.
Traders are buying wheat at a cheaper rate directly from the open market and may consider buying from the FCI after the procurement period is over, they added.
During the last fiscal, the FCI had sold 7 million tonnes of wheat at a base rate of Rs1,900 per quintal.
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