Surplus Wheat and Rice to be Out in Open Market

April 8, 2019

According to government sources, surplus wheat and rice being a buffer and now in excess are being scheduled to be relieved into the open market from the government-held godowns, granaries and warehouses. At the onset of fresh procurement season, evacuation is required to make space for the fresh produce. At present the discussion is underway amongst the Committee of Secretaries (CoS) and after the decision being passed by them and the finance ministry, the final verdict will be of the Election Commission of India.

“Our godowns are inundated with rice and wheat and we are procuring more in the current season. To make way for the new crop, we need to liquidate wheat stocks in the open market at above the reserve price, which is the sum of the minimum support price of the food grain and its procurement cost,” a senior food ministry official said. According to the available information which explains that generally an open-market sale is held after procurement for the bulk consumers but this time the whole process will be an e-auction one. At this time, the Food Corporation of India has 26.3 million tonnes of rice and 20.1 million tonnes of wheat in store.

The official added, “We were able to sell 7 million tonnes of wheat and 800,000 tonnes of rice. This year also, the target is likely to be the same. But rice is not the favourite among millers and bulk consumers. We are unlikely to get very good response. But evacuating space from the new harvest is equally importan

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