India: Centre may sell surplus wheat in small tranches to control atta prices

In order to increase the availability of wheat and check the retail prices of atta (flour), the government may soon sell its surplus wheat in different states in small tranches. According to a report in the Times of India (TOI), flour millers have told the government that they have stocks for one to two months only.

Wheat traders are reportedly sitting on large wheat reserves to sell them at higher prices in the coming months. Against the buffer stock requirement of 20.5 million tonnes, the Food Corporation of India (FCI) has a surplus of 22.7 million tonnes, the TOI report added.

“We have urged the government to make around 40 lakh tonnes of wheat from its stock available in the open market. They have a surplus of wheat over the required buffer stocking norm. The availability of wheat in the market will cool down prices and will be a deterrent for players who have been holding back their stocks in anticipation of further increase in prices,” Pramod Kumar S, president of Roller Flour Millers’ Federation of India told TOI.

For April 1, 2023, the projected stock is 11.3 million tonnes. The buffer stock requirement is 7.5 million tonnes.

The federation also said that the government should announce an open sale of wheat from FCI stock in November. The reserve price for the wheat may be announced as deemed fit by the government, according to the report.

A government official said that the proposal is being looked into, but a final decision has not been taken yet.

Tags: prices, wheat, flour, stocks, atta