The Indian government has prepared the open market sale scheme (OMSS) for the fiscal year starting April 1, setting a minimum price of ₹2,275 per quintal for wheat to maintain market stability and meet a procurement target of 37.3 million tonnes. The OMSS policy, effective till July 31, with a review in July, aims to deter private traders from purchasing wheat during the procurement season, especially in key producing states like Punjab, Haryana, Uttar Pradesh, Rajasthan, and Madhya Pradesh, to ensure the government's procurement targets are met.
During the procurement season, the government plans to prevent sales in these major wheat-producing states to ensure sufficient stock for the Food Corporation of India (FCI), which is facing the lowest buffer stock in seven years. The state of Uttar Pradesh has been proactive in setting high procurement targets and limiting private sector participation in the wheat market. The government’s strategy includes maintaining control over wheat transportation and sales to ensure the success of the procurement process.
Additionally, the Food Ministry has set a reserve price for rice under OMSS at ₹3,100 per quintal until July 31, with specific rates for regions with unique challenges. A retail sale scheme has been established to sell wheat and rice to semi-government and cooperative organizations at controlled prices to curb inflation and stabilize the food economy. These organizations are mandated to sell these staples at government-fixed maximum retail prices, with wheat flour at ₹27.50/kg and rice at ₹29/kg, reflecting the government's efforts to manage food supplies and prices effectively.