25% of wheat stock to be sold to cool prices

The grain will be sold to users in the open market from reserves of about 39.8 mn tonnes

India, the world's second-biggest wheat producer, will sell 10 million tonnes from state inventories in the domestic market as the worst start to the monsoon since 2009 threatens to stoke food prices. The grain will be sold to users in the open market from reserves of about 39.8 million tonnes, Food Minister Ram Vilas Paswan said after a Cabinet meeting in New Delhi.

Prime Minister Narendra Modi's government has ordered a crackdown on hoarders and set minimum export prices on onions and potatoes to increase domestic supplies amid concern that scanty monsoon rainfall will hurt crops and fuel inflation. The Cabinet last month approved sale of five million tonnes of rice from state stockpiles to curb a surge in prices.

Gains in food inflation slowed in June to 8.14 per cent from 8.74 per cent the previous month, while the consumer price index rose 7.31 per cent in June, the least since January 2012.

India received 25 per cent less rain than a 50-year average between June 1 and July 23, the India Meteorological Department estimates.