Food Corporation of India Ensures Stable Food Grain Supply to Tackle Inflation

The Food Corporation of India (FCI) is successfully managing the demand for food grains in both the Public Distribution System (PDS) and the open market. As of December 14, 2023, the central pool boasts ample reserves of wheat and rice, affirming the FCI's commitment to addressing market needs.

To counteract inflationary pressures on wheat and rice prices, the FCI, under the guidance of the Government of India, is actively conducting weekly e-auctions for offloading these essential commodities into the market. This initiative, which began on June 28, 2023, aims to increase the availability of wheat and rice in the open market.

As of December 14, 2023, the Food Corporation of India (FCI) reports a robust stock position in essential commodities within the central pool. The wheat reserves stand at 181.79 lakh metric tonnes (LMT), while the rice stock is recorded at 182.86 LMT. Cumulatively, the central pool boasts a substantial total of 364.65 LMT, indicating a significant reserve that positions the FCI well to meet the demands of the Public Distribution System (PDS) and contribute to market stability.

Wheat Offloading:

The Government of India has allocated 101.5 lakh metric tonnes (LMT) of wheat for offloading under the Open Market Sales Scheme (Domestic) [OMSS (D)]. The reserve prices for FAQ wheat and URS wheat have been set at Rs. 2150 per quintal and Rs. 2125 per quintal, respectively. To date, 25 e-auctions have been conducted, resulting in the sale of 48.12 LMT of wheat in the open market.

Additionally, the government is supplying wheat to Semi-government/Cooperative agencies like NAFED/NCCF/Kendriya Bhandar/MSCMFL at Rs. 21.50 per kg. These agencies are tasked with converting the wheat into atta and selling it to the general public at a maximum retail price (MRP) not exceeding Rs. 27.50 per kg. As of December 14, 2023, these agencies have lifted 86,084 metric tonnes of wheat.

Rice Offloading:

To meet PDS requirements and intervene in the market, the Government of India has allocated 25 LMT of rice under OMSS (D) with a reserve price of Rs. 3100 per quintal. Through e-auctions, rice is offered at Rs. 2900 per quintal, with a Rs. 200 per quintal differential cost covered by the Price Stabilization Fund.

Notably, 1.19 LMT of rice has been sold in the open market to private traders and bulk buyers as of December 14, 2023, marking a significant increase compared to previous years. The FCI Regional Offices have actively promoted this initiative through extensive advertising.

To encourage wider participation, bidders are now allowed to bid for any quantity of rice from 1 to 2000 metric tonnes. The rice offered under the central pool is of excellent quality, and traders are invited to actively engage in e-auctions to ensure easy and affordable availability for consumers in the market.

Regular advertisements are being disseminated to ensure that the benefits of the OMSS (D) policy can be availed of by the general public. All traders and business persons involved in rice trading and processing can participate in these e-auctions after registering with the FCI/m-junction portal.

(Inputs taken from PIB)