Maharashtra to benefit from Food Corp move

FCI to offload 1.5 lakh tonne wheat in open market

To bring a sobering effect on wheat prices which are already ruling high at over Rs 900 a quintal, the Food Corporation of India (FCI) has initiated a new scheme to download an additional 1.5 lakh tonnes in the open market.

Maharashtra, which is largely a non-wheat producing state and is reeling under drought is the biggest beneficiary of the scheme, has been allotted 12 rakes of 2,350 tonnes each.

"Normally wheat prices firm up at this time of the season and next harvest will come only in April. To keep them in check we have floated a new scheme involving open market sales of 1.5 lakh tonne by end of the month", FCI sources said.

They said these sales will be in addition to the movement of 30 rakes or 71,000 tonne a month under the open market sales scheme to various states of the country.

The wheat harvested in 2000-01 and 2002-03 and lying in FCI depots in Punjab and Haryana is being made available under the scheme on 'delivered basis'.

The scheme has come under criticism from certain quarters on grounds of 25 per cent advance to be paid with an order for quantity equivalent to one rail-rake being placed. It is alleged that this will benefit the large traders.

FCI sources, however, said small, medium and large buyers; all can avail benefit of the scheme and an additional 57 rakes are being made available by the railways for speedy transportation.

Advance payments have always been a norm with FCI schemes and traders can always pool in, to order a rail-rake of wheat, they added.