To lower inflation, the Union Government stated on Wednesday that it will sell 50 lakh tonnes of wheat and 25 lakh tonnes of rice from the central pool in the open market.
Food Secretary Sanjeev Chopra told reporters wheat and rice prices had soared. “The government has decided to offload 50 lakh tonnes of wheat and 25 lakh tonnes of rice under the Open Market Sale Scheme (OMSS),” he added.
E-auctioned 7 lakh tonnes of wheat
Chopra said this is in addition to the OMSS sales of 15 lakh tonnes of wheat and 5 lakh tonnes of rice announced months earlier. The Food Secretary added that the OMSS had sold 7 lakh tonnes of wheat and minimal rice through e-auction.
Government may cut import tariff
On August 4, Chopra stated wheat prices are rising and the government is considering decreasing import levies to stabilize them. He claimed Bhutan had requested 80,000 tonnes of government-to-government rice from India.
To increase local availability and retail pricing, the government prohibited wheat exports last year. It sells wheat inventories to flour millers and other merchants to manage wheat and flour prices. Wheat prices rose since the last auction. Chopra said the administration is evaluating all possibilities and will make a good conclusion.
Due to heat waves in a few producing areas, the 2021-22 crop year’s wheat output fell to 107.74 million tonnes from 109.59 million tonnes. The government’s buying dropped to 19 million tonnes from 43 million tonnes previous year. On greater acreage and yield in 2022-23, wheat output is expected to reach 112.74 million tonnes.
Conclusion:-
The Union Government would openly sell 50 lakh tonnes of wheat and 25 lakh tonnes of rice from the central pool to cut inflation. Due to escalating costs, Food Secretary Sanjeev Chopra launched the Open Market Sale Scheme (OMSS) sale of 50 lakh tonnes of wheat and 25 lakh tonnes of rice. OMSS e-auctions have sold 7 lakh tonnes of wheat and minimal rice. To reduce the increase, the administration is considering decreasing import taxes. Bhutan has requested 80,000 tonnes of government-to-government rice from India. To manage wheat and flour prices, the government sells wheat inventories to flour millers and other dealers. Heat waves in various growing areas reduced 2021-22 wheat production to 107.74 million tonnes. In 2022-23, increasing acreage and yield are expected to boost wheat output to 112.74 million tonnes.
