Centre undertakes open market sale of wheat and rice to curb inflation
In a bid to curb inflation and stabilize the rising prices, the Centre has announced an open market sale of wheat and rice through the Food Corp. of India (FCI) as part of its market intervention program.
Under the Open Market Sale Scheme (Domestic) or OMSS(D), the maximum quantity that a bidder can purchase in a single bid range from 10 to 100 metric tons. This reduction in quantities aims to accommodate more small and marginal buyers, ensuring a wider reach of the scheme and immediate availability of stocks to the public.
Challenges such as untimely rains and temperature fluctuations affecting agriculture production in recent years have led to the release of stocks from the FCI under the OMSS(D) program. The government aims to maintain a comfortable level of overall stock while ensuring effective control of inflationary trends.
As part of the revised policy dated June 13, 2023, the government has decided to exclude state governments from the purview of OMSS(D) to maintain adequate stock levels in the central pool while controlling prices. The decision was made following the recommendation of the Inter-Ministerial Committee (IMC) meeting held on 8 June.
The IMC proposed discontinuing the sale of wheat and rice under OMSS(D) to state governments, except for the North-Eastern states, hilly states, and states facing law and order issues or natural calamities. The sale of rice for these exceptional cases will continue at the existing rate of ₹3400 per quintal.
It is important to note that the Department has already imposed restrictions on the sale of wheat under OMSS(D) to states, limiting the quantity to 10,000 tonnes. Now, with the latest directive issued on June 13, 2023, the sale of wheat and rice under OMSS(D) has been discontinued for all states.
The government’s decision to discontinue the sale of wheat and rice under OMSS(D) aims to control food inflation and protect the interests of consumers. The Department also distributes free food grains to 80 crore beneficiaries under the Pradhan Mantri Garib Kalyan Yojna.
Source Link :- https://www.livemint.com/economy/centre-undertakes-open-market-sale-of-wheat-and-rice-to-curb-inflation-11686845341274.html
