Despite best efforts of the government to offload some of the huge wheat stocks from Food Corporation of India and state government-owned godowns through the open market sale of ?wheat sale programme? launched in September 2008, only around 2,80,000 tonne of wheat has been sold to retailers and wholesalers out of the targeted 2 million tonne.

Factors like stable market price of wheat during the last six months along with comfortable stock position with FCI and other state agencies is making Open Market Sale Scheme (OMSS) launched in September 2008 unattractive to retail and bulk consumers.

Although, the government claims that the scheme was launched just to meet any exigencies, but experts believe that if the off take from the states and bulk purchasers remain low, the scheme could meet the same fate as that of subsidised edible oil sale scheme also launched last year.

Through the OMSS, the government intended to control rising inflation and stabilise prices of wheat.

According to official sources, there are hardly any takers for the government?s initiatives to sale 1 million tonne of wheat each under OMSS to bulk as well as retail consumers, respectively. ?The factors such as expectation of a bumper wheat crop and stable market prices are having impact on the scheme,? official sources told FE.

According to official data, under OMSS for the bulk consumers like floor millers, out of the total allotment of 9.72 lakh tonne, private millers till date have lifted only 2.26 lakh tonne.

While the High Level Committee set up to implement OMSS through FCI has approved prices for 3.47 lakh tonne of wheat while only 4.28 lakh tonne has been put under the tendering process. ac

The OMSS was also aimed at supplying wheat to the market during the festive season in the month of October and November 2008. However, because of lukewarm response, the government has extended sale of wheat to retail consumers till February as five states have lifted only 45,000 tonne of the total allocation of 9.09 lakh tonne.

Similarly, the sale of wheat to floor millers has also been extended till the end of January 2009 from the earlier date of November 30, 2008.

In July 2008, the Cabinet Committee on Economic Affairs (CCEA) gave a green signal for allowing the open market sale of wheat as stateowned FCI and state governments owned procuring agencies have lifted close to 23 million tonne of wheat against the target of 15 million tonne during the Rabi season last year.

This massive procurement of wheat is more than the double the procurement the government agencies had done last year. During 2006-07 and 2007-08, the government had procured only 9.2 million tonnes and 11.1 million tonnes respectively. This forced the government to import wheat.

Unattractive deal

• Only around 2,80,000 tonne of wheat has been sold to retailers, wholesalers

• Comfortable stock position with FCI and other state agencies makes OMSS unattractive

• Through OMSS, govt intended to control rising inflation, stabilise prices of wheat