Government to offload wheat stocks from central pool to keep prices in check

NEW DELHI: In a move to check inflation amid concerns about a poor monsoon, the government aims to offload wheat stocks from the central pool. More than 10 million tonnes of wheat is expected to be sold to bulk consumers under the open market sale scheme (OMSS) for the financial year.

“The government will offer wheat for open market sale from the central pool,” food and public distribution secretary Sudhir Kumar said on Twitter.

Ministry officials said 10 million tonnes will be offloaded this year to ensure adequate supplies in the market. “The Prime Minister is not in town so we will move the cabinet note next Wednesday for approval,” said the official.

On July 1, the government’s wheat stock was 39.8 million tonnes against the buffer stock norm of 17.1 million tonnes. “We have adequate stock position and hence will be comfortable releasing 10 million tonnes this year,” said a Food Corporation of India official.

In 2013-14, the government was able to sell 6.1 million tonnes wheat to bulk users--traders and flour millers--under OMSS. It had aimed to sell 10 million tonnes of wheat by the end of March 2014 at a base price of Rs 1,500 per quintal plus freight depending on the location.

The base price could increase marginally by Rs 50-100 a quintal to ensure prices are under control, said an official.