Govt to start open market wheat sale next week
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The government on Friday said it would offload 5-6 million tonnes of wheat starting from next week for open market operation and allocation to the APL consumers through ration shops.
The Cabinet Committee on Economic Affairs had approved on Thursday that the open market sale scheme (OMSS) for both wheat and rice to stabilise the prices in the domestic market.
Speaking on the sidelines of a CII organised bio-fuel summit at Gurgaon, Food and Agriculture Minister Sharad Pawar said, "We will study location wise wheat prices. Essentially in south India, there are many places where there seems to be an upward trend in prices."
Pawar said the Committee of Secretaries would assess the price situation every week and take a decision on location where stock is to be sold.
The government would allocate more wheat for APL (above poverty line) categories in public distribution system and also invite tenders to sell wheat to the flour millers and others, the minister added.
Asked till how long this operation would continue, Pawar said, “It may go up till the end of this year as we have stock for another 14 months.”
The government has a wheat stock of 241.46 lakh tonnes as on August 8, official sources said.
Pawar announced that the government might release about 10 lakh tonnes of rice if it is able to procure 275 lakh tonnes in the ongoing procurement season.
“If we cross 275 lakh tons then possibly we can think of entering the open market, if required,” he said.
Asked about the quantity of rice that could be released under the OMSS, Pawar said, "To begin with, one million tonnes will be possible.”
The minister said that the government could provide more quantities to the southern states like Kerala.
He noted that the Centre has procured 267 lakh tonnes of rice till Thursday and is expecting to get another 10 lakh tonnes, which have been purchased by the states but not yet transferred to the central pool.
Pawar ruled out re-imposing import duty on crude palm oil even as the global prices of CPO have declined.
"We want more availability" of edible oils. The government has abolished the import duties on crude edible oils and also reduced the duties on refined edible oils at 7.5 per cent,” he added.
The Cabinet Committee on Economic Affairs had approved on Thursday that the open market sale scheme (OMSS) for both wheat and rice to stabilise the prices in the domestic market.
Speaking on the sidelines of a CII organised bio-fuel summit at Gurgaon, Food and Agriculture Minister Sharad Pawar said, "We will study location wise wheat prices. Essentially in south India, there are many places where there seems to be an upward trend in prices."
Pawar said the Committee of Secretaries would assess the price situation every week and take a decision on location where stock is to be sold.
The government would allocate more wheat for APL (above poverty line) categories in public distribution system and also invite tenders to sell wheat to the flour millers and others, the minister added.
Asked till how long this operation would continue, Pawar said, “It may go up till the end of this year as we have stock for another 14 months.”
The government has a wheat stock of 241.46 lakh tonnes as on August 8, official sources said.
Pawar announced that the government might release about 10 lakh tonnes of rice if it is able to procure 275 lakh tonnes in the ongoing procurement season.
“If we cross 275 lakh tons then possibly we can think of entering the open market, if required,” he said.
Asked about the quantity of rice that could be released under the OMSS, Pawar said, "To begin with, one million tonnes will be possible.”
The minister said that the government could provide more quantities to the southern states like Kerala.
He noted that the Centre has procured 267 lakh tonnes of rice till Thursday and is expecting to get another 10 lakh tonnes, which have been purchased by the states but not yet transferred to the central pool.
Pawar ruled out re-imposing import duty on crude palm oil even as the global prices of CPO have declined.
"We want more availability" of edible oils. The government has abolished the import duties on crude edible oils and also reduced the duties on refined edible oils at 7.5 per cent,” he added.
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