States get wheat for open mkt sale

Corporate Bureau
Posted: Thursday, Sep 18, 2008 at 0025 hrs IST
Updated: Thursday, Sep 18, 2008 at 0025 hrs IST

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New Delhi, Sep 17: The Centre on Wednesday announced the allocation of wheat under open market sale scheme through which 1 million tonne food grain would be given to states between September and October for distribution to retail consumers.

According to a ministry of agriculture statement, Maharashtra would get the highest 75,000 tonne wheat followed by Kerala which would get 60,000 tonne. The states such Andhra Pradesh, Tamil Nadu, Karnataka, Madhya Pradesh, West Bengal and Delhi would get 50,000 tonne each under the open market sale.

States like Bihar, Goa, Punjab, Uttar Pradesh and Gujrat would get 40,000 tonne wheat under the scheme.

The government has also made it clear to the states that wheat released under open market sale would not be sold to bulk consumers like roller flour mills and large processors of wheat. "Separate guidelines for sale of wheat to bulk consumers are under consideration of the Government and will be issued shortly," the statement said.

The government appointed high-powered committee, which is looking into open market sale, had decided to sell wheat to states at a rate of Rs 1000 per quintal plus the transportation of cost or freight from Punjab and Haryana. As reported by FE earlier, the price of wheat under the open market sale will be maximum in Kerala and lowest in Punjab and Haryana because of proximity to the delivery centre.

Accordingly, the wheat would be sold to Kerala at a rate of Rs 1185 per quintal while Punjab and Haryana would get wheat under the open market sale at Rs 1021 per quintal.

According to the agriculture ministry statement, states or Union territories would lift the allocated quantity of wheat from the godowns of state owned Food Corporation of India (FCI) and distribute it to retail consumers through cooperatives, federations and self help groups. In July 2008, the Cabinet Committee on Economic Affairs had given the nod for allowing the open market sale of wheat as FCI and state governments owned procuring agencies had lifted 22.6 million tonne wheat against the target of 15 million tonne.

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