Andhra to buy wheat from ITC to curb retail prices

The Andhra Pradesh government is soon going to purchase 7,000 tonne wheat from ITC, in addition to the existing stock of up to 6,000 tonne held by the Andhra Pradesh State Civil Supplies Corporation. This is to check retail prices in the ensuing festive season.

The corporation has made arrangements to buy Dara wheat from Uttar Pradesh through ITC at Rs 11,432 a tonne. The wheat, so procured, will be made available to roller flour mills, super bazars and bakery units, besides supplying through the public distribution system at Rs 7 a kg.

Besides, the corporation would make enriched wheat flour and sell it at Rs 10 a kg against a market price of Rs 22, said Bhanwar Lal, managing director, Andhra Pradesh State Civil Supplies Corporation.

In yet another major initiative, the state government has decided to procure 30 lakh tonne rice, in addition to the equal quantity of levy procurement to be made by the Food Corporation of India during the kharif and rabi seasons. The state government procures 3-4 lakh tonne rice every year.

"This procurement is aimed at ensuring minimum support price to farmers in the market," Lal said. It may be recalled that minimum support price for paddy was increased to Rs 650 a quintal for grade-A and Rs 620 a quintal for grade-B rice.

Chief Minister Y S Rajasekhara Reddy, who reviewed the price situation on Thursday, directed the civil supplies officials to notify the AP Scheduled Commodities Dealers (licensing and distribution) Order to check stocks of pulses, besides giving instructions with regard to procurement of various commodities.