Govt to maintain caution till Feb for releasing more wheat

The government said on Wednesday it will maintain a cautious approach towards releasing more wheat from its reserves to the open market till February when the rabi crop harvesting starts.

The government said on Wednesday it will maintain a cautious approach towards releasing more wheat from its reserves to the open market till February when the rabi crop harvesting starts.

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The government has already allotted 20 lakh tonnes under the open market sale scheme.

"Let us see how this two million tonnes goes then we will decide," Agriculture Minister Sharad Pawar said when asked whether government plans to release more quantity of wheat in the open market.

"I am little cautious about it. Wheat sowing is extremely good. But in agriculture unless and until the crop comes to farmers' home, one has to cross fingers. We will wait for another two months. If the present crop condition continues, we can think of disposing maximum quantity in open market," he said.

One has to take precaution as there is a possibility of crop damage due to climate change and other factors, he added.

The Centre had 251.61 lakh tonnes of wheat as on December 1, much more than the norm.

Under the OMSS, the Centre had allocated to the States 10 lakh tonnes of wheat each during October-December and January-March quarters for distribution to retail consumers.

The scheme, however, did not receive good response due to high price fixed by the Centre and the offtake by the States had been very less.

Tuesday, Pawar announced that wheat prices have been reduced by nearly Rs 200 a quintal for open market sale to retail consumers. Earlier, the Centre had decided to sell wheat to the States at the minimum support price of Rs 1,100 per quintal, plus transport cost.