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Sunday / February 23. 2025

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HomePosts Tagged "prices"
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

AgroPolicy, Sugar industry, Supply Chain

The additional sugar in the domestic market will ensure reasonable prices all over the country

Keeping in view the strong demand for sugar for the upcoming festivals of Onam, Raksha Bandhan, and Krishna Janmashtami, the additional quota of 2 LMT (over and above 23.5 LMT already allocated for August 2023) is being allocated for August 2023. The additional sugar in the domestic market will ensure reasonable prices all over the country.

Despite a 25 per cent increase in international sugar prices in the last year, the average retail price of sugar in the country is about ₹ 43.30 per kg and is likely to remain in range bound only. There has been less than 2 per cent annual inflation in the country in sugar prices in the last 10 years.

During the current Sugar Season (Oct-Sep) 2022-23, India is estimated to have produced of 330 LMT sugar after the diversion of about 43 LMT for ethanol production. Domestic consumption is expected to be around 275 LMT.

At the present stage, India has sufficient sugar stock to meet its domestic demand for the remaining months of the current SS 2022-23 and the optimum closing stock of 60 LMT (sufficient to meet sugar consumption for 2 ½ months) will be available at the end of this season i.e. 30.09.2023.

The recent increase in sugar prices will cool down soon as each year during July-Sep, just before next season, prices increase and then come down on the start of cane crushing. Thus, the price rise in sugar is very nominal and for a short duration.

The additional sugar in the domestic market