Winning Bizness Desk

Mumbai. The average price of flour in the country has shot up to about Rs 38 per kg. This shocking development has taken place just a few days before the presentation of the budget which can eventually prove to be a shock for the countrymen. Although the central government has taken a big step to curb the rising prices of wheat and flour. According to sources, the government will sell three million tonnes of wheat from its buffer stock in the open market to control wheat and flour prices. Sources said the Union Food Ministry will sell 30 lakh tonnes of wheat stock to flour mills and traders under the Open Market Sale Scheme (OMSS). Food Secretary Sanjeev Chopra had said on January 19 that the retail prices of wheat and flour have increased and the government will soon take steps to control the rising prices.

What was the purpose of selling buffer stock ?

Notably, under the OMSS policy, the government allows the Food Corporation of India (FCI) from time to time to sell food grains, especially wheat and rice, to bulk consumers and private traders at pre-fixed prices in the open market. The purpose of selling the government's buffer stock of wheat in the open market is to boost supply during times of recession and reduce general open market prices. At the same time, in view of inflation, flour mills have demanded the government to sell wheat stock from FCI.

Government looking for alternatives

Food Secretary Chopra said that the prices of wheat and flour have increased and this issue is in the government's domain and the government is looking for various options. Very soon we will take some steps. The Food Secretary had earlier said that there was sufficient stock of wheat and rice in FCI godowns. In May, the central government had banned wheat exports to control prices following a marginal decline in domestic production and shortfall in FCI procurement for the central pool. India's wheat production had fallen to 106.84 million tonnes in the 2021-22 crop year (July-June). Whereas in its previous year it was 109.59 million tonnes.