Centre to release 900k-tonne wheat

Open market sale to check inflationary trends in food items.

The government has decided to release 909,000 tonnes of wheat under open market sale scheme to 35 states and Union Territories during September and October to check inflationary trends in food items.

The price would range from Rs 1,021 a quintal in Punjab and Haryana to Rs 1,358 a quintal for Andaman and Nicobar Islands.

This price has been calculated by taking the cost of transportation from Ludhiana to a state capital plus the minimum support price of Rs 1,000 a quintal.
 

TAMING THE PRICES
State	Quantity (tonnes)	Price (in Rs/quintal)
Andhra Pradesh	50,000	1,136
Delhi	50,000	1,027
Gujarat	40,000	1,088
Karnataka	50,000	1,161
Kerala	60,000	1,185
Madhya Pradesh	50,000	1,078
Maharashtra	75,000	1,121
Tamil Nadu	50,000	1,154
Uttar Pradesh	40,000	1,055
Bihar	40,000	1,090

Quantities have been allocated depending upon population of states. Large quantities have been released to the following states: Andhra Pradesh (50,000 tonnes at Rs 1,136 a quintal), Bihar (40,000 tonnes at Rs 1,090), Delhi (50,000 tonnes at Rs 1,027), Gujarat (40,000 tonnes at Rs 1,088), Karnataka (50,000 tonnes at Rs 1,161), Kerala (60,000 tonnes at Rs 1,185), Madhya Pradesh (50,000 tonnes at Rs 1,078), Maharashtra (75,000 tonnes at Rs 1,121), Tamil Nadu (50,000 tonnes at Rs 1,154) and Uttar Pradesh (40,000 tonnes at Rs 1,055).

State governments can sell this wheat to retail consumers through civil supply corporations. The sale is expected to cool prices of wheat in the festival season and help control the inflationary surge in several food items usually witnessed during the season.

A proposal to sell wheat to bulk consumers like flourmills and bread manufacturers is also being considered by the Union food ministry.

In the wholesale market, wheat is currently selling at Rs 1,030 to Rs 1,060 a quintal in Delhi and Rs 1,500-1,600 a quintal in the southern states. Wheat has a weight of 1.38 per cent in the wholesale price index, which has been hovering over the 12 per cent mark for past few weeks.

There has been a record procurement of 22.5 million tonnes of wheat during the current rabi marketing season, nearly double last year’s purchase. The central pool had a wheat stock of 23.2 million tonnes as on September 1.