Boosted by all-time high procurement and good production, buffer stocks of wheat and rice are expected to swell in the coming year.
India?s wheat buffer stock as on April 1, 2009 is expected to rise to around 7.86 million tonne, nearly double from last year because of record wheat procurement.
Rice stocks at the start of next marketing year is also expected to rise to around 6.24 million tonne, almost 20% more than the usual buffer norm of 5.2 million tonne.
The high foodgrains stocks in buffer will ensure that prices remain under check and negate the need for imports.
The statement said that government agencies have bought 26.68 million tonne of rice from local farmers up 6.26% from a year earlier. Government also purchased almost 23.5 million tonne of wheat in 2008-09, more than double the last year.
The finance ministry said in a statement the government had approved to sell 6 million tonne of wheat from its stocks in open markets to curb inflation.
Meanwhile, the government on Friday expressed its willingness to release more sugar through the release order mechanism to cool sugar prices. Sugar prices have risen by almost Rs 400 per quintal in the last one-month due to slack supplies and good demand.