Govt to sell buffer wheat stock every quarter to control price

NEW DELHI: The government has decided to sell wheat from its stock in the open market every quarter, starting from July this year, in its bid to check any rise in prices of the foodgrain, atta and other wheat products. Till now the Food Corporation of India offered some of its wheat stock only during the last quarter of the financial year — January and March — when availability of the winter crops dips. Sources said sale of first tranche of wheat under the ‘open market sale scheme’ will be conducted before July.
The move comes amid a series of assembly polls in the run up to next year’s general elections. The government is keen to ensure that food prices remain under check, especially when milk prices are seeing a sharp rise. It has also warned stockists and importers of pulses of action, if they don’t keep the government informed about their stocks or deliberately delay shipments. “If the situation warrants, because of any increase in prices of wheat, we can even go for open sale in June,” an official said.
According to the government’s assessment, private players have bought wheat in large quantities and they would hold the stock to get a better price after May. “We will have enough stock to go for market intervention from the first quarter and won’t allow anyone to artificially jack up prices. We are confident of the wheat procurement this year touching 300 lakh tonnes compared to 188 lakh tonnes last year,” said an official. The wheat procurement so far has surpassed 200 lakh tonnes and procurement usually ends in May.

The average retail wheat and atta prices have fallen to Rs 29 and Rs 34 a kg because of increase in supply after the government sold 34 lakh tonnes of wheat from FCI’s stock in February and March, and fresh procurement of the staple grain.
Officials said FCI and government agriculture cooperative Nafed are opening more procurement centres in UP, Rajasthan and Madhya Pradesh. The government is also likely to stop export of sugar which have not been dispatched from mills even if the stocks are within the capped export limit of 61 lakh tonnes for the current sugar season. This is likely to impact the export of around three lakh tonnes.
The domestic sugar production for the 2022-23 crop year (October-September) is estimated around 327 lakh tonnes compared to 359 lakh tonnes of last year.