What's 'Bharat Atta' that government is selling at subsidized prices
The central government has launched subsidized wheat flour under the Bharat Atta brand to tackle rising prices amid the festive season. Union Consumer Affairs, Food, and Public Distribution Minister Piyush Goyal inaugurated its sale on Monday. Under the government's aegis, Bharat Atta will be priced at Rs. 27.5/kilogram. It will be provided to consumers through cooperative institutions like the National Agricultural Cooperative Marketing Federation of India (NAFED), National Cooperative Consumers Federation of India (NCCF), Kendriya Bhandars, and other cooperative outlets.
Why does this story matter?
The government's move came as the all-India average wheat flour price increased by 4.1% this year, reaching Rs. 35.84/kg. The Centre hinted at the scheme in February to combat inflation. To recall, India also banned wheat exports last year after soaring temperatures diminished yield. Wheat prices surged by 40% globally after the major chunk of wheat exports were affected due to the Russia-Ukraine war. The government's efforts are also being viewed as a move to gain support with elections approaching.
What is the production chain?
Amid the rising prices of wheat flour, the government decided that NAFED, NCCF, and Kendriya Bhandars would receive about 2.5 lakh metric tons (LMT) of wheat from the Food Corporation of India (FCI) depots and convert it to flour. Subsequently, it will be sold through various retail outlets and mobile vans under the Open Market Sale Scheme (OMSS) by branding it as Bharat Atta and mentioning the maximum retail price (MRP) on the packets in bold characters.
FCI has 218 lakh tons of wheat in buffer stock
The wheat will be offloaded to these cooperative institutions for Rs. 21.5/kg, while their profit margins will be capped at Rs. 5 per kg for grinding and packaging. NAFED, NCCF, and Kendriya Bhandars sold Bharat Atta as a pilot run in February at the mandated price of Rs. 29.5/kg, which the government reduced to Rs. 27.5/kg last week. Notably, on November 1, the FCI's buffer stock had 218 LMT of wheat, compared to 138 LMT at the beginning of 2023.
Where can you buy Bharat Atta?
On Monday, Goyal in Delhi flagged off 100 mobile vans that would sell Bharat Atta at an MRP not exceeding Rs. 27.5/kg. The current market rate ranges between Rs. 36-70/kg depending on the region and quality. Economic Times reported Bharat Atta would be sold at over 2,000 outlets operated by cooperative agencies like NAFED, NCCF, and Kendriya Bhandars across the country. Besides, 800 mobile vans will sell this wheat flour across India, offering relief to consumers amid rising prices.
