To reduce inflation, govt will sell wheat to flour mills...
To reduce inflation, govt will sell wheat to flour mills...After the increase in wheat prices, the government is preparing to sell wheat from its reserve to bulk consumers like flour mills and biscuit making companies to provide flour and biscuits to consumers at cheaper prices. To control the prices, the central government has allowed FCI (Food Corporation of India) to sell wheat from its inventory so that the supply of wheat in the market can be increased.Food Corporation of india will sell wheat under OMSS. From next month, FCI will sell wheat at a price of Rs 23,250 per tonne which is 12 percent cheaper than the current price in the market. However, it has not been decided yet how much wheat will be sold under the Open Market Sale Scheme. Last year also, after the rise in wheat prices, FCI sold wheat to bulk consumers and private players. During the financial year 2023-24, FCI sold 10 million metric tonnes of wheat in the open market, which is a record.According to a Reuters report, a dealer associated with a Mumbai-based global trading house said that due to FSI offering wheat at cheaper prices, many private players may show interest in buying large quantities of wheat. Wheat prices in india have jumped 6 per cent in the last one year. Wheat crops were damaged due to rising temperatures in 2022 and 2023, after which the government of india decided to ban wheat exports in May 2022, which is still in force.In the current year also, wheat production has been 6.24 per cent less than the government's estimate of 112 million metric tonnes. Wheat stock in the state warehouses has come down to 29.9 metric tonnes, which was 31.5 metric tonnes last year. In the month of June, the government had fixed the stock limit for traders to keep wheat. According to the report, india may import wheat again after a six-year ban to reduce wheat stocks and control prices. The government has imposed a 40 percent tax on wheat imports. Removal of the tax will open the way for private traders and flour mills to import wheat from russia and Australia.