Karnataka flour mills seek higher wheat allocation under OMSS
Karnataka roller flour mills have urged FCI to raise weekly wheat allocations under OMSS-D to 3 lakh tonnes nationally and 15,000 tonnes for Karnataka ahead of Diwali. Citing inadequate supplies and rising wheat prices, the association warned of growing festive demand for atta, maida and suji, seeking increased allocations from October 28.
Karnataka roller flour mills have urged the Food Corporation of India (FCI) to increase the weekly allocation of wheat offered under the Open Market Sale Scheme (Domestic) (OMSS-D) to 3 lakh tonnes (LT) nationally and 15,000 tonnes for Karnataka to ensure adequate supplies ahead of Diwali.
In a representation to FCI, the Karnataka Roller Flour Mills Association, representing over 40 mills that process more than 18 lakh tonnes of wheat annually, said the national offer of 1.07 LT in the October 21 e-auction was inadequate to meet market demand.
Karnataka received only 6,000 tonnes in the October 21 auction, meeting about 17 per cent of the association members’ estimated weekly requirement of 34,600 tonnes. The association has sought 15,000 tonnes a week, saying this would account for just 5 per cent of the proposed national allocation.
With Diwali falling on November 8, the association has urged FCI to implement the enhanced allocation from the October 28 auction to ensure adequate supplies ahead of peak festive demand for atta, maida and suji.
Suitability
It also urged FCI to prioritise Punjab-origin, non-durum wheat, citing concerns over the suitability of supplies from other origins. According to the association, durum wheat imparts a yellowish tint to flour, making it unsuitable for some atta, maida and food-processing applications.
In the October 21 auction, all 1,300 tonnes of wheat offered ex-Ludhiana were sold at an average winning price of ₹3,179 per quintal. Of the 4,700 tonnes offered ex-Bhopal, 4,130 tonnes were sold.
The association said OMSS (D) winning prices in Madhya Pradesh, Rajasthan and Haryana rose by 6-8 per cent between the October 14 and 21 auctions. Mill-delivered wheat prices in Bengaluru increased by 3.6-6.3 per cent between October 16 and 23. Madhya Pradesh-origin wheat prices rose from ₹3,200 to ₹3,400 per quintal, while Rajasthan-origin wheat increased from ₹3,400 to ₹3,600.
The association said raising the national weekly offer to 3 LT could release around 60 LT into the market over 20 weeks, against approximately 30 LT last year
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Source : BusinessLine
