Latest news with #DFPD
Business Standard
4 days ago
- Business
- Business Standard
Regulatory enhancement to offer improved visibility on domestic production, imports, and stock levels of edible oils
The Department of Food and Public Distribution (DFPD) has notified an amendment to the Vegetable Oil Products, Production and Availability (Regulation) Order, 2011 (VOPPA Regulation Order, 2011), to boost Edible Oil Data Compliance. Originally issued under the Essential Commodities Act, 1955, the order was framed following the repeal of earlier regulations by the Food Safety and Standards Act, 2006. The amendment seeks to align the order with institutional changes brought about by the 2014 merger of two key directorates and to strengthen data collection mechanisms in the edible oil sector through the incorporation of provisions under the Collection of Statistics Act, 2008. This regulatory enhancement is designed to benefit both consumers and stakeholders across the edible oil value chain. With improved visibility on domestic production, imports, and stock levels, the Government will be equipped to undertake timely policy interventions-such as adjusting import duties or facilitating imports-to correct supply-demand imbalances. This will contribute to stabilizing retail prices and improving the availability of edible oils nationwide. The amendment enhances transparency, facilitates better market intelligence, and supports evidence-based policymaking. It enables closer monitoring of production and stock positions, ensuring consistent availability of edible oils and supporting the Government's national food security objectives. Stakeholder consultations were held with key bodies, including the Food Safety and Standards Authority of India (FSSAI), the Department of Animal Husbandry, and various edible oil industry associations. Industry associations have expressed strong support for the initiative and are encouraging their members to register through the National Single Window System (NSWS) and submit monthly returns via the official VOPPA portal.
Indian Express
17-07-2025
- Business
- Indian Express
Why Govt has offered wheat and rice for sale in open market, but at a higher price than last year
The central government has increased the reserve prices of wheat and rice to be offloaded to private traders from its strategic reserves by about 11 per cent and 3 per cent respectively over the last fiscal (2024-25). Reserve price is the minimum price at which the Food Corporation of India (FCI) – the statutory body that procures, stores, and distributes foodgrains through the Public Distribution System (PDS) – sells from the Central Pool under the Open Market Sale Scheme-Domestic (OMSS-D). The scheme is used by FCI to offer grains, mainly wheat and rice, in the open market by e-auction as a mechanism to ensure supply and control food inflation. Why is the increase in the reserve price of India's main cereals important? The new reserve prices The Department of Food and Public Distribution (DFPD) under the Ministry of Consumer Affairs, Food and Public Distribution, which has fixed the reserve prices of wheat and rice, has not announced what quantities of these grains will be sold in the open market. That will be decided by FCI. WHEAT: On July 10, the DFPD fixed a reserve price of Rs 2,550 per quintal for wheat to be sold to private parties through e-auctions; central cooperative organisations (such as NAFED, NCCF, and Kendriya Bhandar) for sale under the 'Bharat' brand; and to community kitchens. This reserve price is for wheat of all crop years including the current rabi marketing season (RMS) 2025-26, and will be valid until June 30 next year. It is 10.86 per cent higher than the reserve price fixed in the last fiscal (2024-25), which was Rs 2,300 per quintal. RICE: The reserve price of rice has been fixed in the range of Rs 2,320 to Rs 3090 per quintal, depending on who the buyer is. The existing reserve prices of rice will continue until October 31. From November 1, the reserve price of rice containing 25 per cent broken grains for sale to private parties and cooperatives/ cooperative federations by e-auction will be Rs 2,890 per quintal. This is 3.21 per cent more than the existing reserve price of Rs 2,800 per quintal. The reserve price of rice for sale to state governments and their corporations, and to ethanol distilleries for production of ethanol will increase to Rs 2,320 per quintal from the existing Rs 2,250 per quintal. And the reserve price for sale of custom milled rice (CMR) with 10% broken rice under the Rice Milling Transformation Scheme in the open market to private parties through e-auction has been raised to Rs 3,090 per quintal from Rs 3,000 per quintal. COARSE GRAINS: The reserve price for the sale of bajra to private parties through e-auction has been fixed at Rs 2,775 per quintal, ragi at Rs 4,886 per quintal, jowar at Rs 3,749 per quintal, and maize at Rs 2,400 per quintal. Why the increase in prices The Ministry has said that the 3 per cent increase in the reserve price of rice is in line with the increase in the minimum support price (MSP) of paddy. The MSP for paddy (common) and paddy (Grade A) have been fixed at Rs 2,369 and Rs 2,389 per quintal – 3 per cent higher than the last season. However, the increase in the reserve price of wheat is higher than the increase in its MSP. The MSP for wheat was increased by 6.59 per cent – to Rs 2,425 per quintal for RMS 2025-26 from Rs 2,275 per quintal in 2024-25. BUMPER CROP, BETTER PROCUREMENT: Wheat production reached a record high of 117 million tonnes in 2024-25, the third advance estimates of production of foodgrains released by the Agriculture Ministry on May 28 show. Government procurement for the central pool too was higher compared to the previous season. In the current RMS 2025-26, wheat procurement had reached 30 million tonnes by July 6, higher than the 26.5 million tonnes of last year. SUFFICIENT STOCKS: India's granaries are full. Rice stocks are at record levels, and wheat stocks are at their highest level in the last four years. According to FCI data, 37.9 million tonnes of rice and 36.9 million tonnes of wheat was available in the central pool as on June 1. Another 32.2 million tonnes of unmilled paddy (rice in husk) and 0.45 million tonnes of coarse grains were available. With an encouraging outlook for kharif in view of higher sowing and a good monsoon, the government has the scope to offload wheat and rice in the open market. This will also keep in check the inflationary trends in foodgrains. Harikishan Sharma, Senior Assistant Editor at The Indian Express' National Bureau, specializes in reporting on governance, policy, and data. He covers the Prime Minister's Office and pivotal central ministries, such as the Ministry of Agriculture & Farmers' Welfare, Ministry of Cooperation, Ministry of Consumer Affairs, Food and Public Distribution, Ministry of Rural Development, and Ministry of Jal Shakti. His work primarily revolves around reporting and policy analysis. In addition to this, he authors a weekly column titled "STATE-ISTICALLY SPEAKING," which is prominently featured on The Indian Express website. In this column, he immerses readers in narratives deeply rooted in socio-economic, political, and electoral data, providing insightful perspectives on these critical aspects of governance and society. ... Read More
Indian Express
13-07-2025
- Business
- Indian Express
Centre hikes reserve prices for open-market sale of wheat by 10.86% and rice 3%
The Centre has hiked the reserve price of wheat and rice by 10.86 per cent and 3 per cent, respectively, for sale under the open-market sale scheme-domestic (OMSS-D) during the 2025-26 financial year. As per an order issued by the Ministry of Consumer Affairs, Food and Public Distribution on July 10, a reserve price of Rs 2,550 per quintal has been fixed for the sale of wheat of all crop years including rabi marketing season 2025-26 to private parties through e-auction; for sale to central cooperative organisations like NAFED/NCCF/ Kendriya Bhandar for sale under the Bharat brand through own stores/mobile vans, or e-commerce/big chain retailers; and for sale to community kitchens. The prices will be valid up to June 30, 2026, the ministry said in the order. 'Transportation cost, as applicable, will be added to the reserve price,' it said. The wheat reserve price fixed for the financial year 2025-26 is 10.86 per cent higher compared to Rs 2,300 per quintal in the last fiscal year (2024-25). While the Department of Food and Public Distribution (DFPD) has fixed the reserve price of wheat, it has not announced the quantity to be sold through the open-market sale scheme. The quantity to be sold will be decided by the Food Corporation of India (FCI). 'The quantum of stocks to be offloaded & timing, considering stocks holding at the relevant point of time may be decided by FCI in consultation with DFPD after keeping the stocks for PDS requirement, buffer norms and additional quantity of 20 LMT that can be used in case of any exigency,' said the order. The existing reserve prices of rice will continue till October 31, 2025, and the 3 per cent hike in prices will come into effect from November 1 onwards. From November 1, the reserve price of rice with 25% broken grains to private parties and cooperatives/cooperative federations through e-auctions will be increased to Rs 2,890 per quintal from Rs 2,800 per quintal. The reserve price of rice for sale to state governments and their corporations, and to ethanol distilleries for the production of ethanol, will increase to Rs 2,320 per quintal from Rs 2,250 per quintal. The reserve price for the open-market sale of custom-milled rice (CMR) with 10 per cent broken grains—under the rice milling transformation scheme—to private parties through e-auctions has been hiked to Rs 3,090 per quintal from Rs 3,000 per quintal. '3% increase in Reserve Price in accordance with increase in MSP of paddy,' said the order. According to the order, support from the price stabilisation fund amounting to Rs 200/quintal for the sale of rice to central cooperative organisations for sale under the Bharat brand rice will be discontinued with effect from July 1, 2025. The quantity of rice to be sold under the OMSS-D has also not been announced. 'Quantum of stocks to be offloaded, and timing, considering stocks holding at the relevant point of time may be decided by FCI in consultation with DFPD after keeping the stocks for PDS requirement, buffer norms and additional quantity of 30 LMT that can be used in case of any exigency,' said the order. The ministry has also fixed reserve prices of coarse grains—for sale of bajra to private parties through e-auctions at Rs 2,775 per quintal, ragi at Rs 4,886 per quintal, jowar at Rs 3,749 per quintal, and maize at Rs 2,400 per quintal. Harikishan Sharma, Senior Assistant Editor at The Indian Express' National Bureau, specializes in reporting on governance, policy, and data. He covers the Prime Minister's Office and pivotal central ministries, such as the Ministry of Agriculture & Farmers' Welfare, Ministry of Cooperation, Ministry of Consumer Affairs, Food and Public Distribution, Ministry of Rural Development, and Ministry of Jal Shakti. His work primarily revolves around reporting and policy analysis. In addition to this, he authors a weekly column titled "STATE-ISTICALLY SPEAKING," which is prominently featured on The Indian Express website. In this column, he immerses readers in narratives deeply rooted in socio-economic, political, and electoral data, providing insightful perspectives on these critical aspects of governance and society. ... Read More
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Business Standard
24-06-2025
- Business
- Business Standard
Landed prices of imported edible oils move up despite halving of duty
While exporters have raised prices to nullify duty cuts, concerns over the Israel-Iran conflict, and the expected global diversion of additional vegetable oil for biofuel blending schemes are factors New Delhi Listen to This Article The landed price of major edible oils has risen by 3-5 per cent during the week ended June 20 as compared to the previous week that ended in June 13, data from industry bodies show. The upward movement is despite India lowering import duties on crude oils by 10 percentage points, a 50 percent reduction, last month to ease inflationary pressures and to ensure steady supplies. In fact, consumer price index-based inflation (combined) for most edible oils has remained stubbornly high since January 2025 despite overall food inflation coming down, prompting the Department of Food and Public Distribution (DFPD) to
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Business Standard
11-06-2025
- Business
- Business Standard
Govt asks edible oil industry to pass tax cut benefits to retail users
The government had reduced the Basic Customs Duty (BCD) on crude edible oils-specifically crude sunflower oil, soybean oil, and palm oil-from 20 per cent to 10 per cent on 31 May New Delhi The Department of Food and Public Distribution (DFPD) held a meeting with leading edible oil associations and industry stakeholders. An advisory was issued, instructing them to pass on the benefits of the reduced duty to consumers, said the Ministry of Consumer Affairs, Food & Public Distribution. The government had reduced the Basic Customs Duty (BCD) on crude edible oils—specifically crude sunflower oil, soybean oil, and palm oil—from 20 per cent to 10 per cent on 31 May. This revision has widened the import duty differential between crude and refined edible oils from 8.75 per cent to 19.25 per cent. The advisory directed all stakeholders to immediately revise the Price to Distributors (PTD) and Maximum Retail Price (MRP) in accordance with the new import duty, ensuring that cost savings are transmitted across the supply chain to end consumers. PTD is the rate at which manufacturers or importers sell to distributors. It includes production costs, taxes, and distributor margins. MRP is the maximum price that can be charged to consumers, encompassing all taxes and profit margins throughout the supply chain. Weekly reporting of price adjustments Edible oil associations were advised to ensure that their members implement immediate price adjustments and share updated brand-wise MRP data with the department on a weekly basis. The DFPD also provided a standardised reporting format for revised MRP and PTD submissions. 'This decision follows a detailed review of the sharp rise in edible oil prices after last year's duty hike. The increase led to significant inflationary pressure on consumers, contributing to rising food inflation,' the government statement said. 'This adjustment (tax reduction) aims to address the escalating edible oil prices resulting from the September 2024 duty hike and concurrent increases in international market prices,' said the Ministry of Consumer Affairs, Food & Public Distribution. Explaining the rationale behind the revised import duty structure, the ministry stated: 'A 19.25 per cent duty differential between crude and refined oils helps encourage domestic refining capacity utilisation and reduce imports of refined oils.' Boost to domestic refining capacity This move is expected to lower the landed cost of crude edible oils, reduce retail prices, and provide relief to consumers. It also aims to promote the utilisation of domestic refining capacity, thereby curbing the import of refined oils. 'The timely transmission of this benefit through the supply chain is imperative to ensure that consumers experience a corresponding decrease in retail prices,' the ministry added.
