With the Open Market Sale Scheme (OMSS) for wheat coming to a grinding halt because of low market prices, Food Corporation of India (FCI) has started the sale of coarse grains in the open market, which it procured from farmers under the price support scheme in 2009-10 crop year.

Sources told FE that a High Level Committee (HLC) of food ministry in a recent meeting has approved sale of 17,000 tonne of bajra (pearl millet) in Haryana and smaller quantities in Maharashtra in the open market. Presently in Delhi markets, bajra is selling at around Rs 860-Rs1,100 per quintal.

FCI had issued tenders for sale of bajra early this month. FCI has already lifted close to 4 lakh tonne of coarse grains from farmers this year of which major share is that of maize (3.1 lakh tonne) followed by bajra (77,646 tonne) and jowar (638 tonne).

While FCI procures coarse grains under its price support programme so that farmers are protected against distress sale, the corporation sells it in the open market after meeting the requirement of state governments.

While the state agencies procure the coarse grains on behalf of FCI. FCI carries out the tendering process. The government has mandated FCI to supply coarse grains to states under the Targeted Public Distribution System (TPDS) if requested from the state governments.

Last year, Gujarat government had requested for 17,000 tonne of bajra, which was to be distributed through TPDS.

FCI accordingly lifted bajra from Haryana, but later Gujarat government didn?t take delivery of the coarse grains.

Meanwhile, after initiating a pilot project for carrying out e-auction of wheat in Delhi under the OMSS, FCI is also considering a proposal to offload coarse grain through the same process for cutting down on time and also to bring down the cost. ?It would help in ?competitive? bidding of prices depending on market availability,? sources said.

The electronic platform, besides expediting the process of tendering, would also cut down FCI cost of tendering and publication of notice in various newspapers. With there is hardly any takers for OMSS wheat, the government had extended the deadline for sale of wheat under OMSS for bulk consumers till June as inventories soared.