Question : WHEAT FOR BULK CONSUMERS

(a) whether the Government has auctioned wheat to the bulk consumers, flour mills and industrial units during the last eight months;

(b) if so, the details thereof indicating the rate at which the wheat was auctioned to them;

(c) whether the Union Government is aware of the fact that the product of wheat such as flour is being sold at a huge margin of profit by these flour mills and industrial units all over the country;

(d) if so, whether there is no check of the Government on the price of flour produced and sold by the flour mills from wheat procured through Government auction at cheap price; and

(e) if so, the reasons therefor and the corrective steps taken by the Union Government in this regard?

MINISTER OF STATE IN THE MINISTRY OF CONSUMER AFFAIRS, FOOD & PUBLIC DISTRIBUTION
(SHRI RAOSAHEB PATIL DANVE)

(a) & (b) Yes Madam. The Government has allocated 100 Lakh MT of wheat for sale through weekly e-auctions to Bulk Consumers/Private Traders under Open Market Sale Scheme Domestic [OMSS(D)] up to 31.03.2015 (including delivery period).

Reserve price of the wheat sold under OMSS(D) is fixed in following manner:-

In the States of Punjab, Haryana and Madhya Pradesh, the reserve price of wheat has been kept at Rs. 1500 per quintal for wheat stock of crop-years upto 2013-14 and Rs. 1570 per quintal for wheat stock of RMS 2014-15. For depots of FCI located outside Punjab, Haryana and Madhya Pradesh, the depot wise reserve price of wheat is to be arrived by adding railway freight from Ludhiana to the nearest railhead and road transportation cost from such railhead to the depot, to the crop year-wise reserve price for Punjab/Haryana/MP.

Against the said allotment, a quantity of 38.67 lakh tonnes of wheat has been confirmed for sale during the year 2014-15 upto 19.02.2015 at an average price Rs. 1614.40/- per Qtl.

(c) & (d) Price of Wheat sold under OMSS(D) scheme is fixed by the Government taking into account the prevailing market situation, trend of inflation and need of liquidation of surplus stock available under Central Pool without distorting the market too much. Rate of wheat products is not regulated by the Government.

(e) Does not arise.