The government has not yet taken a decision on when to release wheat from the buffer stock for sale in the open market but is firm on not to allow export of the grain.
When asked about the timing of the sale of wheat under the Open Market Sale Scheme (OMSS), Minister of State for Food and Agriculture K V Thomas said, "We are still discussing the mechanism of the wheat sale under the scheme as the flour millers have requested to change the tendering system."
Speaking on the sidelines of the annual general meeting of the Roller Flour Millers Federation, Thomas said the government has decided to sell one million tonne (mt) of wheat under OMSS and it favours giving the grains to states.
A high level ministerial panel has already allowed the Food Ministry to sell up to 3 mt of wheat from its reserves between October 2009 and March 2010.
Under the OMSS, the Centre releases the foodgrain from its reserves to check the price rise.
Flour millers have been demanding that the government should sell the wheat from its reserves on 'first come, first serve' basis taking into account their requirement.
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Asked if there was a demand from states, the minister added the Centre has requested them to lift the foodgrain. Last year, states had lifted about 80,000 tonnes of wheat while the Centre had offered 1 mt of the foodgrain.
Speaking at the AGM, Thomas said the government has decided not to allow export of wheat.
"Keeping in view the likely reduced production of foodgrains in kharif 2009-10, there is a need to conserve stocks of foodgrains. Therefore, it is not found feasible to permit export of wheat," he said.
Thomas added that the proposed law on food security is being delayed as the Centre is yet to arrive at a consensus with states on the number of families below poverty line. He pointed out that some states have issued more BPL ration cards than the number of the poor families.
The minister suggested the flour millers to go for value-added products instead of sticking to manufacture flour, maida and sooji (refined flour).
He also asked them to work with the Central Warehousing Corporation (CWC) to augment the storage facilities in the country. Pointing to bad management in Food Corporation of India (FCI), Thomas added he had to intervene after finding that godown full of wheat was stored with FCI in Calicut whereas people in Kerala prefer to eat rice.
Speaking on the occasion, the flour millers' association President M K Dattaraj demanded relaxation in fumigation norms for imported wheat. He also suggested that the government appoint their representatives in various committees.