The Food Corporation of India (FCI) is eyeing Rs 10,400 crore from the sale of surplus wheat in the open market by 31 March, 2016. The average wheat selling price has been slightly higher than that last year. Due to the sale of surplus wheat stock, there would be enough wheat in the market so the prices remain under check.
The wheat stock was 74% up at 240 lakh tonnes when compared to the 138 lakh tonnes required by the buffer stocking norms, Press Trust of India reported.
"The wheat so far has been sold at an average price of Rs 1,605 per quintal. The corporation is aiming that by the end of the current financial year the total sales will be around 65 lakh tonnes at the same price," a source said.
A committee on FCI restructuring led by former food minister Shanta Kumar observed in its report that compared to the buffer stocks norms, the stocks with the FCI have been more than double. It also suggested a transparent policy which would automatically begin when the company was faced with surplus stocks.
It recommended greater flexibility to the Food Corporation to operate in export and open markets and because of these sales proceedings, it would be unlikely that there would be any wheat stock shortage.
The FCI was set up at Tamil Nadu in 1965. It was established implement the food policy of India such as market stabilisation for price invention, effective price support organisation for the interest of the farmers, maintaining satisfactory level of stocks in ensuring national food security in India, according to the official website.