Additional 50,000 tonne wheat to be released

The Centre will release additional 50,000 tonne wheat for open market sale scheme (OMSS) during the month to improve supplies and keep prices under check, said an official food department release.

Of this, about 20,000 tonne would be released for Delhi, 10,000 tonne for Haryana and 5,000 tonne each for Jammu & Kashmir, Andhra Pradesh, Karnataka and Tamil Nadu.

Earlier this month, the government had released 1 lakh tonne wheat for OMSS in March. With this additional release, the total releases during January-March thus far, are 6.98 lakh tonne.

The official release clarified that the department of food would be considering further releases under the OMSS in April 2006 to curb speculative price rise.

While open market wheat prices have started softening in northern states, prices remain relatively high in southern states.

Today, spot prices of wheat is about Rs 870-890 per 100 kg and had even spiralled to Rs 1,055 per 100 kg in early January. Southern states are still witnessing high prices, about Rs 970-980 per 100 kg. Following this, the government had asked STC to import 5 lakh tonne of wheat by mid-May at southern ports.

"The OMSS releases have helped in increasing supplies of wheat and in stabilising wheat prices," the statement said. The scheme is handled by the Food Corporation of India, which also releases OMSS rates every quarter.