Food grain sale to continue under Open Market Scheme

The Dollar Business Bureau The Government of India (GoI) has decided that the sale of food grains for the year 2015-16 would continue through the existing Open Market Scheme (OMS). The information to this effect was provided to the States by the Department of Food and Public Distribution, Ministry of Consumer Affairs, GoI, on Tuesday. In an official release, the government said that it has decided to continue the sale of wheat in the domestic market under the OPS scheme, but only in subject to specific changes. According to the first such modification, the sale of wheat under the above-said scheme would be implemented after March 31, 2015, but only in the non-wheat procuring States. The non-wheat procuring States are the ones excluding Punjab, Haryana, Himachal Pradesh, Rajasthan, Madhya Pradesh, Bihar, Gujarat, Maharashtra, Jammu & Kashmir, Uttar Pradesh, NCT Delhi and UT of Chandigarh. The reserve price for sale of wheat in the above said States after the said period shall be Rs 1550/quintal, inclusive of additional freight and road transportation charges, if there any. Earlier, in a previous release, the Minister of State for Consumer Affairs, Food and Public Distribution, had informed that the reserve price of wheat for stock of crop-years up to 2013-14 stands at Rs 1500/quintal and Rs 1570 per quintal for wheat stock of 2014-15. However, for the Food Corporation of India depots located outside Punjab, Haryana and MP, the reserve prices include freight and transportation charges, the Minister added. It was also informed in the release that the sale of wheat under the OMS scheme in 2015-16 will be resumed following the decision taken for sale of wheat from the surplus procuring states like Punjab, Madhya Pradesh and Haryana. The price of wheat sold under OMS-Domestic is usually fixed by the government taking into account the prevailing market situation, inflation trend and necessity for the liquidation of surplus stock available under Central Pool. However, the rate of the wheat products will not be regulated by the government.    

This article was published on March 31, 2015.