In an effort to enhance the availability of wheat in the open market and further stabilize wheat prices, the Government of India has taken significant steps to increase the quantity that bidders can purchase under the Open Market Sale Scheme (Domestic) [OMSS (D)].
Effective November 1, 2023, the maximum quantity that a bidder can purchase has been raised from 100 metric tons (MT) to 200 MT. Additionally, the total quantity offered per e-auction across India has been increased from 2 lakh metric tons (LMT) to 3 LMT.
These measures are part of the Government's larger initiative to intervene in the market and control the retail prices of essential commodities such as rice, wheat, and atta. As part of this initiative, weekly e-auctions for both wheat and rice are organized to ensure a stable and fair market for these essential food items.
The most recent e-auction, the 18th of the 2023-24 season, was held on October 26, 2023. In this auction, a substantial quantity of 2.01 LMT of wheat from 444 depots was made available for bidding across the country. A total of 2,763 empaneled buyers actively participated in the e-auction for wheat, demonstrating a robust interest from the market. Ultimately, 1.92 LMT of wheat was successfully sold to 2,318 winning bidders, reflecting the effectiveness of these measures in boosting market participation and wheat availability.
The weighted average selling price for FAQ (Fair Average Quality) wheat was reported at Rs. 2,251.57 per quintal, surpassing the reserve price of Rs. 2,150 per quintal on a Pan India basis. For URS (Under Raw Rice Scheme) wheat, the weighted average selling price reached Rs. 2,317.85 per quintal, significantly exceeding the reserve price of Rs. 2,125 per quintal.
It's important to note that the government has taken measures to ensure that traders do not engage in hoarding practices with wheat sold under OMSS (D). Regular checks and inspections are being conducted at the Flour Mills of the processors who have purchased wheat under OMSS (D). As of October 26, 2023, a total of 1,627 checks have been carried out across the country to prevent any irregularities and uphold the integrity of the program.
These policy adjustments represent a concerted effort by the Government of India to maintain stable wheat prices in the market and to ensure the availability of this essential staple to the general public.
