Sale of 30 LMT of wheat under Open Market Sale Scheme

January 28, 2023

Under the Open Market Sale Scheme, the Food Corporation of India sells surplus rice and wheat stocks. The prices of the food grains are pre-determined. Recently, the Government of India issued orders to the FCI to sell 30 LMT of wheat under the open market sale scheme. The Union Government has taken this step to reduce the consistent price rise of wheat in the country.

What is the plan?

Apart from the Open Market Sale, the Government of India is to take the following measures:

E-Auction will be conducted and 3000 MT of wheat will be sold per bulk buyer or flour miller
Without auctions, the union government will distribute wheat to the state governments and the union territories. They will then circulate the wheat to the public through the Public Distribution Systems (Ration Shops)
Also, the Government will sell wheat at a concession to the cooperative societies, public sector units, NAFED, etc. No E–Auction will be conducted for them. They can then sell this wheat to the public at a reduced price. The GoI has fixed this price as Rs 29.50

Reasons for the increase in wheat prices

Russia withdrew from the Black Sea Grain Export Deal
GoI did not launch the Open Market Sale Scheme on time
Rise in international fuel cost
Huge demand for Indian wheat in the International market. So more wheat was exported bringing a shortage inside the country

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