Wheat Price: Government to lower wheat prices soon with THIS new plan

The central government approved the proposal on Wednesday to sell 30 lakh tonnes of wheat in the open market to cool down the price of wheat and wheat flour. Wheat prices have touched their highest in decades. 

Within a span of two months, the centre will sell the buffer wheat stock in the open market through multiple channels. It will have a wider reach to keep the prices of wheat and flour in check. 

"Offloading of 30 LMT wheat in the market through the Open Market Sale Scheme (Domestic) within a span of two months through multiple channels will have wider reach as well as an immediate impact on the soaring wheat and atta (wheat flour) prices and will help contain the rising prices and will bring much relief to the common man," the Ministry of Consumer Affairs, Food & Public Distribution said in a statement.

The sale of wheat and wheat flour will happen through e-auction under the open market sale scheme from the Food Corporation of India and will start next week and the entire quantity will be offloaded in two months, reported TOI. 

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This sale will be done via traders, state governments, cooperatives and federations at a minimum price of Rs 2,350 per quintal. The transport cost is to be borne by buyers. The bidders quoting the maximum price will get the wheat. 

Wheat will also be made available to state and local governments and UTs for their programmes without an online auction.

In major cities, the average price of wheat on Wednesday was Rs 33.43 per kilogramme, up from Rs 28.24 per kilogramme a year earlier, according to official data. In comparison to a year before, the average price of atta was Rs 37.95 per kg.

According to the open market selling scheme (OMSS) policy, the government occasionally permits FCI to sell food grains, particularly wheat and rice, to large consumers and private dealers in the open market at fixed rates.

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The goal is to increase supply during the slow season and lower overall open market pricing.

The government is looking into every possible method to lower the cost of wheat and atta, according to remarks made by Sanjeev Chopra, the food secretary, last week.