Govt mulls restart of wheat open market sale in October

The government, looking to offload grain from its overflowing warehouses, plans to restart open market sale scheme (OMSS) for wheat in October, a senior government official said.

“October is the time when fresh OMSS wheat releases are likely to ensure ample supplies and prevent price rise,” the official said.

He said the food department would submit its proposal to restart wheat OMSS to the Cabinet for approval in the first week of September. “By October, hopefully, it should start,” the official said.

He said the price at which the government would sell wheat under the OMSS to states and bulk users would be decided in September after looking at supplies and wholesale prices.

In the last financial year, the government had allocated over 4 million tonnes wheat under the open market sale scheme, 2.07 million tonnes for sale to states and 2.08 million tonnes for direct sale to bulk users.

The scheme, initially valid till March 31, has been extended till June-end for bulk users and till September-end for states that do not produce or procure wheat.

A government official said states have so far lifted 422,160 tonnes wheat under OMSS, while bulk users have lifted about 1.23 million tonnes.

The government has been selling wheat under OMSS at a base price calculated after adding transportation cost from Ludhiana to state capitals to last season’s minimum support price of Rs 1,080 a quintal.

The official said the sale price of wheat under OMSS in the new phase would be based on this year’s support price of Rs 1,100 a quintal.