Mumbai, 16 August 2023
The Ministry of Consumer Affairs, Food and Public Distribution’s Department of Food and Public Distribution has taken a significant step towards ensuring price stability and consumer benefit. In an effort to curb escalating prices and extend the advantages of stabilization to consumers, the Ministry has authorized the disposal of surplus wheat and rice through the Open Market Sale Scheme (Domestic).
Under this scheme, 50 Lakh Metric Tons of wheat from the Central Pool Stock are set to be offered through e-auction to flour mills, processors, and manufacturers of wheat products. A limit of 100 Metric Tonnes per PAN Card has been imposed, enabling wider participation and equitable distribution. Simultaneously, the sale of 25 Lakh Metric Tons of rice is also approved under the scheme.
Notably, the scope of participation isn’t restricted solely to producers and processors. Traders of rice are also invited to engage in the sale auctions. Each bidder can bid for up to 1000 Metric Tons, promoting a diverse and competitive marketplace.
The auction process, which commenced on June 28th and subsequently recurs every Wednesday, has already witnessed seven auctions for wheat and six auctions for rice. Impressively, a total of 3,68,143 MT of wheat and 1,65,000 MT of rice have been offered, with a reserved price structure. Specifically, Fair Average Quality wheat is priced at Rs 2150/Quintal, Under Relaxed Specification wheat at Rs 2125/quintal, Fortified Rice at Rs 2973/Quintal, and FAQ Rice at Rs 2900/Quintal. Encouragingly, 1,29,943 MT of wheat and 230 MT of rice have been successfully accepted through these auctions.
The tangible impact of this initiative is reflected in the lifting of 1,05,354 MT of wheat and 210 MT of rice as of 13.08.2023. This market intervention, aimed at tempering inflationary pressures, underscores the Ministry’s commitment to ensuring price stability and extending the benefits to the end consumer.
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(Source FCI) | PIB Mumbai | S.Thakur/D.Rane
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