In a major policy decision to stabilise the prices of essential commodities Government has increased the maximum purchase limit and e-Auction quantity of wheat.
To boost wheat availability in the open market and maintain wheat prices, the Government of India has decided to implement key changes in the Open Market Sale Scheme (Domestic) [OMSS (D)] starting November 1, 2023. These changes include raising the maximum quantity a bidder can purchase under OMSS (D) from 100 MT to 200 MT and increasing the total quantity offered per e-auction across India from 2 LMT to 3 LMT.
The government’s move is part of its broader initiative to intervene in the market and regulate retail prices of essential commodities like rice, wheat, and atta. Weekly e-auctions are conducted for both wheat and rice as part of this initiative. The 18th e-auction for the fiscal year 2023-24 took place on October 26, 2023, offering a total quantity of 2.01 LMT wheat from 444 depots nationwide.
In this e-auction, 2763 empanelled buyers participated in the bidding for wheat, with 1.92 LMT of wheat successfully sold to 2318 winning bidders. The weighted average selling price for FAQ wheat was Rs. 2251.57/qtl, exceeding the reserve price of Rs. 2150/qtl Pan India. Similarly, the weighted average selling price for URS wheat stood at Rs. 2317.85/qtl, surpassing the reserve price of Rs. 2125/qtl.
To prevent stock hoarding and ensure transparency in wheat sales, traders are not allowed to participate in the OMSS (D). Regular checks and inspections are conducted at the flour mills of processors who have purchased wheat under OMSS (D). As of October 26, 2023, a total of 1627 checks have been carried out throughout the country. These measures are in line with the government’s ongoing efforts to ensure fair and transparent grain distribution in the country’s open market.
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