Govt puts wheat sale on hold

The government has put on hold its wheat sale tenders after finding no takers for wheat offered under the open market sale scheme.

“We are yet to receive nod from the government to float the tenders,” a senior official at Food Corporation of India (FC), the agency entrusted to float the tenders, said on condition of anonymity.

In August, the Cabinet Committee on Economic Affairs had asked the government to sell about 1 million tonnes (MT) of wheat to states under the open market sale scheme and had asked FCI to float tenders for sale to bulk buyers.

Last month, the government set the open market sale scheme wheat price at Rs 1,016-1,343 a quintal, but so far none of the states has opted for the scheme.

The FCI official said some states refused to buy wheat under the open market sale scheme, citing absence of a mechanism at the state level to sell wheat directly to retail buyers, while others have refused it as they find prices too high.

He said even last year, out of the total open market sale scheme wheat allocation of about 400,000 tonnes, FCI was able to sell only 65,000 tonnes.

“This time, we haven’t been able to sell anything so far under OMSS,” he said.

The official said a lack of enthusiasm from buyers has given the government cold feet over wheat sale tenders for bulk buyers as well.

A senior official from the department of food and civil supplies said the government is trying to work out an alternative method to ensure there are adequate wheat supplies in the market.

“We have already released large quantities of wheat for above the poverty line families ahead of the festive season, which are keeping prices stable,” the official said.