The Food Ministry is looking to sell additional three million tonne wheat in the open market to bulk consumers such as flour millers, a move aimed at containing price rise and offloading surplus stocks.
"We are taking a proposal before the Cabinet Committee on Economic Affairs (CCEA) for releasing another three million tonne of wheat to bulk consumers under the open market sale scheme (OMSS)," Food Minister K V Thomas told PTI.
In June, the government had allocated sale of three million tonne of wheat from its godowns under the OMSS to ease storage pressure during monsoon season.
If this proposal is approved by the CCEA, the total quantity of wheat to be sold in the open market would reach six million tonne in this fiscal.
Asked about status of 3 million tonne of wheat sale approved in June, Thomas said, "We have already released 1.3 million tonne of wheat under OMSS. Another one million tonne of wheat will be sold next month and the remaining quantity will be released thereafter."
The ministry has decided to release a total of six million tonne of wheat under the OMSS, though the Commission for Agriculture Costs and Prices (CACP) had suggested 10 million tonne of the grain, he said.
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As per latest data, the entire quantity allocated in the first tranche has been sold to bulk users by the Food Corporation of India (FCI).
Under the OMSS, FCI has sold wheat initially at a floor price of Rs 1,170 per quintal through the tender process.
The base price was hiked to Rs 1,285 from early this month.
Meanwhile, wholesale prices of wheat have been rising due to short supply of the grain in the open market and fears that wheat crop in the rabi season may be down due to poor rains.
Wholesale prices in the national capital have risen by 22% to Rs 1,625 per quintal in the last one month.
As on August 1, the government has total stock of 76 million tonne of foodgrains, out of which wheat is 47.52 million tonne. The storage capacity is 71.41 million tonne.
The government's stocks have risen sharply due to record production and procurement in the last few years.