Centre to release 3 million tonnes wheat to open market to rein in prices

The Centre has approved a proposal to sell three million tonnes of wheat held by government agencies through the open market sale scheme (OMSS) to help rein in the abnormally high prices of wheat in the country, a food ministry official said.

This sale will be done via traders, state governments, cooperatives and federations in the next two months at a concessional rate of ?2,350 per quintal, the official told ET. Wheat prices in the Delhi market touched a record high of ?32 per kg on January 16, up from ?29/kg on January 13 amid a shortage, traders said. "This step (by the government) will definitely help in bringing down wheat prices by Re 1 or Rs 2. However, the actual supply will take around 10-15 days to reach the market," said Mohit Upadhyay, managing partner of HMV Agro.