Government is likely to release 4-5 lakh tonnes of wheat for the states in the next two weeks under the open market sale scheme (OMSS) but flour mills may have to wait longer.
"We are considering release of 4-5 lakh tonnes to States under OMSS," a senior government official said.
He said, the stock would reach identified states within next two weeks but noted that it all depends on response from the state governments.
The official ruled out immediate release of wheat to flour mills through tender saying "there is no such need as of now as prices are stable".
The Cabinet Committee on Economic Affairs on August 21 had approved the OMSS for both wheat and rice in order to stabilise domestic prices.
Under the scheme, Centre will allocate food grains to states and Union Territories for distribution to retail consumers, however, for bulk buyers, the Food Corporation of India (FCI) would sell the stock through bids.
Food and Agriculture Minister Sharad Pawar had last week indicated that government could release up to six million tons of wheat under the scheme.
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"We will study location-wise wheat prices. Essentially in south India, there are many places where there seems to be an upward trend in prices," he had said.
The Committee of Secretaries (CoS) would assess the price situation every week and provide recommendations to the Food Ministry of the location where stock is to be sold.
Sources said that the CoS is likely to meet tomorrow where this issue would be discussed.
According to the FCI, the nodal agency for procurement and distribution of foodgrains, wheat stock stood at 241.46 lakh tonnes as on August 8 as it has procured a record 225 lakh tonnes this year.