Open market sale of wheat sale may be wound up soon
By Sandip Das
The government is likely to wind up open market sale of wheat from the Food Corporation of India (FCI) stock by the end of this month. It has also called a meeting of state food secretaries to chalk out a strategy for procurement of grain for the next season (2024-25).
Sources said that the bulk sales of wheat in the market to cool down prices may continue till the end of this month against the usual date of March 15.
Till Wednesday, the FCI has sold a record 8.94 million tonne (MT) to bulk buyers through weekly e-auction since June.
Inflation in wheat declined further to 2.33% in January from 4.69% in December on year because of improvement in supplies due to aggressive selling of grain by FCI in the open market.
Meeting of food secretaries of wheat growing states are slated for February 28. Last season (2023-24), FCI and agencies had purchased 26 MT of wheat under minimum support price (MSP) operations.
Earlier the centre had asked key wheat-growing states including Uttar Pradesh, Punjab, Haryana, Madhya Pradesh and Rajasthan to commence registration of farmers and setting targets for procurement under the MSP operations early.
Usually wheat procurement is carried out during April-June period.
Uttar Pradesh, the largest wheat producer in the country, has been directed to start purchase from the farmers from March 1 while Madhya Pradesh, the second biggest contributor to the central pool stock after Punjab, has been urged to commence MSP purchase operation by March 15, a week ahead of the usual date.
Officials said that talks are on with Madhya Pradesh, the second highest contributor to the central pool stock, which has promised bonus over the MSP of Rs 2175/quintal on quantum of grain to be purchased.
The food ministry has given approval to purchase wheat in Rajasthan at Rs 2400/quintal, which includes the bonus of Rs 125/quintal over MSP. “The state government has agreed to transfer the bonus amount within two days of procurement as per the norm for MSP payment,” an official told FE.
The state agencies in Punjab and Haryana, start MSP operation for wheat from April 1, the grain purchase picks up after Baisakhi on April 14.
At present, FCI has wheat stock of 11.85 MT, lowest since 2016 against the buffer of 7.4 MT for April 1.
The government has set a higher wheat production target of a record 114 MT for the 2023-24 crop year (July-June) against an estimated output of 110.5 MT in 2022-23.
This article has been republished from The Financial Express.