Centre to sell 1.3 million tonne wheat to bulk users
The Centre would sell 1.3 million tonnes of wheat to bulk consumers like flour millers at subsidised rates in the first phase in July-September to ease storage crisis.Updated: Jul 05, 2012 18:50 IST
The Centre would sell 1.3 million tonnes of wheat to bulk consumers like flour millers at subsidised rates in the first phase in July-September to ease storage crisis.
Following the nod of a ministerial panel last month for the sale of three million tonnes of wheat via the Open Market Sale Scheme (OMSS) to bulk users, the food ministry has issued an order allocating 1.3 million tonnes of wheat for sale under the scheme in the first quarter starting July.
"Allocation of 13,01,581 tonnes of wheat has been made under the OMSS for the July-September period," a senior food ministry official said.
Of the total allocation, maximum of 2.3 lakh tonnes of wheat has been made to Karnataka, followed by Delhi at 1.97 lakh tonnes, Jammu and Kashmir at 1.83 lakh tonnes, Maharasthra at 1.64 lakh tonnes and Punjab at 1.11 lakh tonnes.
Wheat will be sold under the OMSS at Rs 1,170 per quintal as compared to the procurement price plus other costs of Rs 1,822 per quintal. On top of it, the government would bear the freight cost.
The subsequent allocation of wheat would be made after taking into account the offtake of the grain under the scheme, the official added.
The sale of wheat under OMSS would benefit flour millers and biscuit makers. There are as many as 1,200 flour millers across the country, of which 75% are located in north India. The total annual capacity of these mills is estimated to be 25 million tonnes, industry experts said.
The government godowns are overflowing with a record 82 million tonnes of foodgrains against the storage capacity of 64 million tonnes. The stocks have risen due to a record production and procurement in the last few years.