Government plan to control inflation, FCI sold so many tonnes of wheat in open market

FCI sells wheat in the open market: The central government is continuously taking major steps to control food inflation in the country. Now the government is selling wheat stocks in the open market to control wheat prices ahead of the festive season. The Food Corporation of India (FCI) has sold 2.37 million tonnes of wheat from its stock through e-auction this financial year, the food ministry has informed.

According to a report published in Financial Express, FCI also said that the corporation has sold a total of 0.19 MT of wheat through e-auction on Wednesday alone to control the price of flour in the country. The target is to sell a total of 5 MT of wheat through e-auction by the end of the year. Along with this, the official also said that the government is selling wheat at Rs 2,220.17 per quintal through e-Namali. Earlier, its price was fixed at Rs 2,254.71 per quintal.

Fall in the price of wheat

It is worth noting that the price of wheat has decreased in recent times. In such a situation, the price of wheat sold by FCI in the open market has been reduced. Also the quantity of wheat sold by FCI is less than 90% of the proposed quantity. In such a case, it is clearly evident that there is ample storage of wheat in the country and there is no shortage of flour in the country. Notably, FCI has been selling wheat continuously since August 2023 and this has also affected wheat prices. In August, the rate of retail inflation of wheat decreased to 7.93 percent from 9.3 percent.

Reduction in the rate of food inflation

To control wheat prices, the central government had announced the sale of 5 metric tonnes of additional wheat in August 2023. Earlier, Food Secretary Sanjeev Chopra had also said that the government is also considering reducing the import duty to control flour prices. In August, the government reduced the wheat storage limit with traders from 3,000 tonnes to 2,000 tonnes. Apart from wheat, the government has taken several measures to control the prices of rice and sugar. The impact of these measures is also visible, with retail inflation falling to 5.02 percent in September from 6.83 percent in August 2023. According to the data of the Ministry of Statistics, in the month of September, the rate of inflation of food items has decreased significantly and it has reached 6.56 percent.

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