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CCEA approves sale of 6.5 million tonnes of wheat

12 Nov 2012 Evaluate

The Cabinet Committee on Economic Affairs (CCEA) approves the sale of 6.5 million tonnes of wheat to bulk consumers like flour millers and biscuit makers in a bid to ensure rising prices of wheat products and to offload excess stock.

CCEA has also approved allocation of additional 5 lakh tonnes each of wheat and rice to NAFED, NCCF and Kendriya Bhandar for sale to retail consumers. It will be done through state/UT governments and national cooperatives like NAFED, NCCF and Kendriya Bhandar under Open Market Sale Scheme - Domestic (OMSS (D)).

The sale of wheat and rice under OMSS (D) will increase the availability of these commodities in the market and will have moderating influence on prices of wheat and rice in the open market. The retail prices of wheat flour in domestic wholesale market are hovering at Rs 21 per kg, while the minimum support price (MSP) of wheat is Rs 12.85 per kg. The government has released about 3 million tonnes of wheat to bulk consumers since June 2012.

India produced a surplus wheat crop of 93.90 million tonne in the 2011-12 crop year (July-June) with government procurement thumping a record 38.1 million tonne. The stocks of wheat in the central pool stood at 40.58 million tonnes at the end of Oct 2012.

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