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AgroPolicy, Foodgrains, India, Supply Chain

The successful implementation of the OMSS(D) policy has ensured that the prices of wheat are kept under control in the open market

As a part of Govt of India’s initiative for market intervention to control the retail price of wheat and atta, the Food Corporation of India (FCI) is offering wheat under the Open Market Sale Scheme (Domestic) [OMSS(D)] through weekly e-auction at the reserve price of Rs. 2125/- per qtl which is at par with the current MSP of wheat.

A quantity of 2.00 LMT wheat is being offered in each weekly auction across the country from more than 480 depots and during the year 2023-24, till 21.09.2023 total of 13 e-auctions have been conducted wherein 18.09 LMT wheat has been sold under the scheme.

The weighted average selling price of wheat during August’23 was Rs. 2254.71/qtl which has come down to Rs. 2163.47/qtl in the e-auction dated 20.09.23. The downward trend in the weighted average selling price of wheat suggests that the market prices of wheat have cooled down in the open market. In each weekly e-auction conducted, the quantity sold has not crossed 90 per cent of the qty offered which shows that sufficient stocks of wheat are being offered across the country.

The successful implementation of the OMSS(D) policy has ensured that the prices of wheat are kept under control in the open market and sufficient stock of wheat is available in the central pool for the continuation of OMSS(D) policy for the remaining period of 2023-24.

The successful implementation of the OMSS(D) policy

Foodgrains, India, Supply Chain, Trade

To keep prices down last year India banned wheat and broken rice exports and imposed a 20 per cent export duty on non-basmati rice varieties

India will export around 1.05 million tonnes of food grains to Nepal, Indonesia, Senegal and the Gambia as part of economic diplomacy in 2023.

Last year to keep prices down, India banned wheat and broken rice exports and imposed a 20 per cent export duty on non-basmati rice varieties.

The Department of Food and public distribution has allowed exports of 300,000 tonnes of wheat to Nepal, 200,000 tonnes of broken rice to Indonesia, 500,000 tonnes of broken rice to Senegal, and 50,000 tonnes of broken rice to Gambia on a request by the external affairs ministry. 

The Food Corp of India (FCI) so far has procured a little over 26 metric tonnes of wheat in the 2023-24 (October-March) rabi marketing year against a target of 34.5 metric tonnes. A hot February and heavy rains in March and April lowered wheat production to below the agriculture ministry’s second estimate of 112.2 metric tonnes.

In the case of rice, FCI had procured 77.2 metric tonnes of paddy in the ongoing 2022-23 (April-September) kharif marketing season and 3.2 metric tonnes of paddy in the current 2023-24 rabi marketing season against an estimated target of 15.7 metric tonnes. 

Last year, India exported 1.8 metric tonnes of wheat, including 33,000 tonnes of 50,000 tonnes committed to Afghanistan as part of humanitarian assistance.

To keep prices down last year India

AgroPolicy, Foodgrains, India, Supply Chain

Wheat production is to be higher by 5% this year

Buoyant over the various estimates on wheat production and procurement, Ashok Kumar Meena, Chairman & Managing Director, of Food Corporation of India said that in view of better-than-expected wheat production, estimates and the government’s assurance to support farmers in view of unexpected rains, FCI has already procured 7 lakh tons of wheat as on date and is well-poised to procure 342 lakh tons of wheat in this year.

“It is important for all of us – government and the private sector to work together to ensure that prices of wheat and atta remain stable, despite global headwinds. We have the support of higher production estimates too with us,” said Meena.

Echoing the sentiments, Subodh Kumar Singh, Additional Secretary, Department of Food & Public Distribution, Ministry of Consumer Affairs, Food & Public Distribution, Government of India said that the estimates of both ministry and private sector are signalling higher wheat production this year, despite the impact of unseasonal rains and hailstorm in March-April, 2023.

They were addressing the 1st Extra Ordinary General Meeting and Board of Directors Meet of Roller Flour Millers’ Federation of India, wherein a survey report on ‘Wheat Crop & Production Estimates for the Crop Year 2022-23’ was also unveiled.

The Survey report prepared by Agri Watch on behalf of the Federation has predicted wheat production of 102.89 million tons, reduced from 104.24 million tons (estimated in March 2023) due to unseasonal rains and hail storms faced by wheat-producing states towards the end of March. The estimates are based on the survey conducted in two phases across 9 states (80 districts) – Bihar, Gujarat, Haryana, Madhya Pradesh, Maharashtra, Rajasthan, Punjab, Uttar Pradesh and West Bengal. 

Speaking on occasion, Pramod Kumar S, President, of the Roller Flour Millers’ Federation of India requested the government to lift the ban on wheat products export on account of higher estimates and sufficient buffer stock.

“Though the unexpected rains and hailstorm have played spoilsport in the record production that we were expecting, however higher acreage and yield are expected to create a comfortable situation for the country. Hence, we request the government to consider lifting the ban on wheat export, so that we could support the large Indian diaspora that always prefers Indian wheat atta,” he said.  

“In order to avoid the past situations wherein the absence of data led to the fluctuation of wheat prices, we have come up with this survey. It will help both the industry and government to plan the future course of action as well as measures to control the prices,” said Navneet Chitlangia, Senior Vice President of the Federation who was also present during the press conference.

Wheat production is to be higher by

AgroPolicy, Foodgrains, India, Supply Chain, Sustainability

Till the 5th e-auction, 28.86 LMT wheat stock has been sold

As a part of Govt of India’s initiative for market intervention to control the price of wheat and atta, in the sequel of weekly e-auctions of wheat, the 6th e-auction was conducted by the Food Corporation of India. A total quantity of 10.69 LMT of wheat was offered from 611 depots across 23 Regions of FCI and 4.91 LMT of wheat has been sold to 970 bidders.

In the 6th e-auction, against the all-India weighted average reserve price of Rs. 2140.46/qtl, the weighted average selling price received was Rs 2214.32 /qtl. In the 6th e- auction Quantities ranging from 100 to 499 MT had maximum demand followed by quantities of 500-999 MT followed by the 50-100 MT quantity bracket.

Till the 5th e-auction, 28.86 LMT wheat stock has been sold against which 23.30 LMT has been lifted.

After the 6th e-auction, the cumulative sale of wheat under OMSS (D) has touched 33.77 LMT against the overall allocation of 45 LMT. The sale has brought a significant effect in cooling down the price of wheat and atta all over the country which is likely to remain stabilised with the future tenders for the open sale of wheat under OMSS.

Till the 5th e-auction, 28.86 LMT wheat

India, Supply Chain, Warehousing

Silos to be constructed in three phases over the next 3-4 years

 Food Corporation of India (FCI) has planned to construct 111.125 Lakh Metric Tonnes (LMT) modern steel silos at 249 locations spread across 12 states under Hub & Spoke model under Public Private Partnership with total investment of approx. 9236 crores. These silos would be constructed in three phases over next 3-4 years.

 In the first phase of Hub & Spoke model, silos of 34.875 LMT capacity at 80 locations would be constructed by FCI. Out of this, 10.125 LMT at 14 locations would be under DBFOT mode and 24.75 LMT at 66 locations under DBFOO mode. Tender under DBFOO mode is due to be opened on 31.10.2022 whereas tender for DBFOT mode already has opened on 10.08.2022 & one project was awarded to a developer and for other projects, process is underway. These modern Silos with bulk handling facilities is a scientific way of storage of foodgrains and ensures better preservation of foodgrains.

These Silos at 80 locations shall be spread across 9 states and 1 UT i.e., Punjab, Haryana, Uttar Pradesh, Madhya Pradesh, Gujarat, Rajasthan, Maharashtra, Bihar, West Bengal and Jammu & Kashmir and expected to be built with an investment of more than Rs. 2,800 crores. These projects are conceived in consultation with state governments, Niti Aayog, Ministry of Finance, Ministry of Railways, Ministry of Steel.

In the already awarded and ongoing Silo Projects, a capacity of 17.75 LMT at 31 locations (Including Circuit Model) has been completed / put to use and 15.50 LMT at 31 locations are under various stages implementation.

The proposed model of development is DBFOT (Design, Build, Finance, Operate and Transfer) and DBFOO (Design, Build, Finance, Own and Operate) wherein the private entities shall be responsible for construction and operation of these modern Silos for a pre-defined period. Through this Public Private Partnership (PPP) mode of DBFOT, the land is to be provided by FCI while under the DBFOO mode, the land is to be acquired by the private entities.

These modern Silos near farms would act as purchase centers (mandies) and expected to reduce distance for farmers and further reduce operational difficulties and complexities. Mechanized operations make silos operational round the clock and also reduce turn-around time for intake and off take of agri-produce and would improve overall efficiency. Further, these modern steel silos require approximately 1/3rd land as compared to conventional storage warehouses.

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Silos to be constructed in three phases

Foodgrains, India, Logistics, Supply Chain, Transportation, Warehousing

The Department of Food and Public Distribution (DFPD) has received an overwhelming response towards the technical bids of Design, Build, Fund, Own & Operate (DBFOT) tender under the Hub and Spoke Model. Taking into consideration modernisation of foodgrain storage infrastructure in the country, a new model for development of grain Silos across the country i.e. The Hub & Spoke Model in Public Private Partnership (PPP) Mode has been proposed.
A Total of 38 bids have been received against four bundles comprising 14 locations in Uttar Pradesh, Bihar, Rajasthan, Punjab, Maharashtra and Madhya Pradesh. In all, 15 prospective parties have shown interest and submitted their bids. The Technical Evaluation is expected to be completed in by the first week of September. Under the Hub and Spoke Model, the Department proposes to develop a capacity of 111.125 LMT of Hub and Spoke Model Silos at 249 locations across the country under Design, Build, Fund, Own & Transfer and Design, Build, Fund, Own & Operate, through Food Corporation of India (FCI), the implementing agency.

The Department of Food and Public Distribution