Govt may release 4.5 MT foodgrain in open market to check prices

The Centre may offload 3 million tonnes (MT) of wheat and 1.5 MT of rice from its reserves in the open market to contain the rise in prices of foodgrains at a time when one-fourth of the country is reeling under a drought-like situation.

Not just this, if the proposal of the Food Ministry is anything to go by, the ban on the exports of wheat and non- basmati rice is likely to continue, so also the regime of importing wheat at zero duty.

Accordingly, the ministry has sought approval from the Empowered Group of Ministers (EGoM), headed by Finance Minister Pranab Mukherjee, for offloading wheat and rice in the open market after ensuring that the requirement under buffer and strategic reserves are met, official sources said.

A meeting of EGoM was earlier scheduled for August 6 but it was cancelled. The proposal came amid apprehensions about rise in prices of foodgrains, mainly rice, in view of a slump in paddy acreage following the poor monsoon.

Under the Open Market Sale Scheme, meant for both States as well as bulk consumers, the Centre may offload up to 3 MT of wheat and 1.5 MT of rice, they added.