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FCI to sell ten MT wheat in open market, but scheme gets poor response
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Tuesday, 19 August, 2014, 08 : 00 AM [IST]
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Abhitash Singh, Mumbai
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fiogf49gjkf0d The ministry of consumer affairs, food and public distribution, in consultation with the finance ministry, has decided to sell about ten million tonne (MT) wheat and rice from the Food Corporation of India (FCI) in the open market to check the rising price.
An FCI official stated that the Open Market Sale Scheme (OMSS), under which the grains were to be sold to bulk buyers and traders across the country, was launched in the first week of August, but the buyers’ response is very poor. He added that only 36,000 tonne of the grain was sold.
“Going by past experience, the sales could pick up in the month of October. We would then be able to sell more wheat. The sale of wheat under OMSS would conclude on March 31, 2015,” the official stated.
On a recent visit to Mumbai, Ram Vilas Paswan, minister for consumers affairs, food and public distribution, said, “FCI has been asked to dispose some of the excess stock in the open market within one-and-a-half months, while it should be disposed through public distribution system within a week.”
When quizzed about FCI’s storage capacity, the corporation’s senior official stated, on the condition of anonymity, that FCI had approximately 74 million tonne wheat, including the stocks available at its various regional offices.
“Presently, the wheat prices are stable, and traders have enough stocks from this year's crop,” he adding that this was done when there are reports about deficient rainfall and their impact on foodgrain production,” he added.
“The wheat price under OMSS has been fixed at Rs 1,500 per quintal, excluding freight charges, to the consuming locations from Punjab, which is one of the key producers of the grain,” the official informed.
Sudhir Kumar, secretary, ministry of consumer affairs, food and public distribution, “The government has been selling wheat through OMSS in the last few years in a bid to reduce FCI’s excess grain stock.”
“In the last financial year, FCI had sold 5.8 MT wheat to such bulk buyers as flour millers and bread manufacturers under OMSS. The target FCI set for 2013-14 was to sell 8.5 MT, but it fell short of the expected target,” he added.
When quizzed about FCI’s restructuring, officials from the ministry and the corporation said, “The decision to restructure FCI is yet to be taken. Talks are in process, and the decision would be taken soon.” FCI is expected to start the fresh procurement of foodgrains after the monsoon. Paswan added that from this season, FCI would also procure corn from Bihar.
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