CCEA approves sale of 10.5 mn tonne foodgrains in open mkt

The government today decided to sell 10.5 million tonnes of foodgrains, largely wheat, in open market to control retail prices and clear storage space -- a move that would entail a subsidy of about Rs 5,500 crore.
"The Cabinet Committee on Economic Affairs (CCEA) has approved allocation of 10 million tonnes of wheat and 0.5 million tonnes of rice from FCI godowns for sale under the Open Market Sale Scheme (OMSS)," Food Minister K V Thomas said after the meeting of the panel.
The total subsidy for 10.5 million tonnes of foodgrains would be Rs 5,491 crore as the prices under OMSS are lower than the cost of acquisition, sources said.

The proposal to allow an additional 2 million tonnes of wheat export through PSUs was not listed on the CCEA agenda.
Briefing the media, Finance Minister P Chidambaram said: "CCEA has approved allocation of wheat under OMSS. We have comfortable stock position of wheat".
The open market sale would help vacate storage space for new crop, he said. The government has procured 25.1 million tonnes of wheat so far.

Out of 10 million tonnes of wheat to be offloaded through OMSS, the Food Corporation of India (FCI) would sell 8.5 million tonnes from Punjab and Haryana to bulk consumers at Rs 1,500 per quintal.

One million tonnes of wheat will be offered from FCI centres across the country to small traders at Rs 1500/quintal plus freight. About 4,00,000 tonne of wheat would be allocated to states for distribution to retail consumers and another 1,00,000 tonnes to cooperatives at Rs 1,500/qtl plus freight.
Thomas said the CCEA approved allocation of about 5,00,000 tonne of rice to states for retail consumers at Rs 1875 per quintal plus freight.