M A I N   N E W S

10.5m tonne foodgrain to be sold to curb price rise

Subsidy burden The subsidy on 10.5 million tonnes of foodgrain will be around Rs 5,491 crore as the prices under the Open Market Sale Scheme are lower than the cost of acquisition The move intended to control retail prices The open market sale is expected to help vacate storage space for the new crop

New Delhi, June 21
The government today decided to sell 10.5 million tonnes of foodgrains, largely wheat, in the open market to control retail prices and clear storage space. The move will 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 the FCI godowns for sale under the Open Market Sale Scheme (OMSS),” Food Minister KV Thomas said.

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: “The CCEA has approved allocation of wheat under the OMSS. We have comfortable stock position of wheat.” The open market sale would help vacate storage space for the new crop, he said.

The government has procured 25.1 million tonnes of wheat so far. Out of the 10 million tonnes of wheat to be offloaded through the OMSS, the FCI would sell 8.5 million tonnes from Punjab and Haryana to bulk consumers at Rs 1,500 per quintal.

One million tonne of wheat will be offered from FCI centres across the country to small traders at Rs 1,500 per quintal-plus freight. About 4 lakh tonnes of wheat would be allocated to states for distribution to retail consumers and another 1 lakh tonnes to cooperatives at Rs 1,500 per quintal-plus freight. — PTI