The government uses tools such as the open market sales scheme to regulate market prices and supply of key commodities, including wheat. Under the scheme, food crop of India sells food grains to bulk consumers and private traders at a pre-determined price in the open market. The arrival of wheat in Punjab and Haryana is very good and procurement in just these two states will help generate around 200 lakh tonnes for the central pool.
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An unexpected fall in wheat procurement from a “realistic target” has derailed the Government’s plan to start selling the grain in the open market anytime soon, even as the current policy is about to end on July 31. Having addressed the tight wheat stock situation with higher-than-usual procurement, the government has decided to take a call on whether to resume open market sale of the grain this month after assessing the market sentiments.
Presentation- Dibyabharati Nayak