In its bid to counter spiralling inflation, the Union government is working on a plan to sell wheat in the open market from government stocks after meeting PDS requirement of the states. The plan will be implemented in the next six months.
?We are working on a plan to sell wheat in the open market to increase availability in the country,? Pawar said on the sidelines of National Cooperative Development Corporation meet.
He said the wheat would be sold in the open market through states after meeting their public distribution programme requirements.
In India, the Union government allocates around 1 to 1.2 million tonne (MT) of wheat and around 2 to 2.2 MT of rice per month from the central pool for public distribution programme in states. Additional wheat and rice is allocated for various new social welfare programmes introduced by the government.
?The government is concerned over rising inflation and will take all steps necessary to control the prices,? he added.
He said that state agencies have managed to procure around 22.2 MT of wheat from farmers till date, which is the highest ever procurement since independence, and the government plans to use this huge inventory to bring prices down.
?We might take a decision on lifting the ban on exports of wheat and rice sometime around October-November when kharif sowing operations is complete in the country,? Pawar said.
Last year, the Union government imported wheat for the second successive year as procurement by state agencies reached only around 11.1 MT. It imported around 1.8 MT of wheat despite strong opposition from political parties.
However, this year procurement reached an all-time high figure because of bumper production and an Rs 150 per quintal increase in minimum support price (MSP) of wheat to Rs 1,000 per quintal. Recently, an empowered group of ministers had decided that the country might not need any wheat imports this year because of bumper production.
Pawar said, ?India?s wheat production in the current marketing year that started in April could exceed the government?s third advanced estimate of 76.78 MT and reach a new record of around 78 MT.
On increasing the MSP of rice to Rs 1,000 per quintal, from the earlier announced ad-hoc MSP of Rs 850 per quintal, Pawar said a final decision would be taken by the Prime Minister?s Economic Advisory Council and the agriculture ministry won?t be able to comment on that.
On inflation, Pawar said farmers should not be blamed for increasing the selling price of fruits, vegetables and foodgrains as cost of key input like diesel has risen significantly.