FCI earns Rs 9,310-cr by selling 5.8 MT of wheat under OMSS

State-owned Food Corporation of India (FCI) has earned Rs 9,310 crore by selling wheat under the open market sale scheme (OMSS) in 2013-14.

The Corporation, however, was able to sell only 5.8 million tonnes (MT) of wheat under this scheme at the end of 2013-14 against the target of 8.5 MT, sources said.

The average price realised from the sale was Rs 1,602.85 per quintal, they added.

The reserve price under OMSS was fixed at Rs 1,500 per quintal plus applicable taxes and other levies in case of Punjab, Haryana and Chandigarh.

While, in respect of other states the freight cost from Ludhiana to the concerned state was added to Rs 1,500 for the purpose of fixing the reserve price.

The maximum quantity of wheat sale was in Haryana at of 1.13 MT, followed by Punjab with 7.63 lakh tonnes, Delhi with 7.6 lakh tonnes and Haryana with 6.24 lakh tonnes.

The amount realised from the sale of wheat could be of some help to the FCI at a time when it is facing liquidity crunch and has food subsidy dues of about Rs 50,000 crore.

The government pays bulk of food subsidy to FCI as it is the nodal agency with the primary task of purchasing and ensuring effective prices to farmers. It also ensures required supply of food grains at cheaper rates throughout the country.

In September last year, the government had allowed FCI to sell wheat stocks under OMSS it has excess of stock of the grain.