Decision on wheat sale in open market today
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16/07/2008
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Economic Times (New Delhi)
THE government is likely to take a decision on Thursday to sell up to six million tonnes of wheat in the open market for bringing down prices of food grain in the country. "I am going to take a decision to enter open market as I have kept about six million tonnes exclusively (for this purpose),' agriculture and food minister Sharad Pawar said on the sidelines of the Indian Council of Agricultural Research foundation day function here. Mr Pawar pointed out that wheat prices have increased marginally in some pockets. "We will offload wheat in those pockets where prices are rising,' he said. "I have kept 55 lakh tonnes in buffer stock which is 10 lakh tonnes more than our buffer norm of 45 lakh tonnes. I have also kept 3 million tonnes as strategic reserve and 3 million tonnes for the open market,' the minister said. However, the government could utilise strategic reserve for open market sale, he said, adding, "the scope is for six million tonnes'. Mr Pawar also said the procurement for ricehas reached about 264 lakh tonnes so far while 12 lakh tonnes have been procured by states on behalf of the Centre, which has not been transferred to the central pool yet. The minister said the rice procurement target of 270 lakh tonnes would be met when states would transfer procured stock. "We expect another one million tonnes of procurement in the next one and a half months,' he said. He assured that the government has enough rice to meet the public distribution system (PDS) requirement and maintain buffer stock norm. Asked whether the Centre would be able to create strategic reserve of rice, Mr Pawar said: "As per the decision, strategic buffer stock of five million tonnes will be created in two years.' The minister noted that strategic reserve of three million tonnes, which was supposed to be created in two years, has already been done this year. He expressed confidence that in case of rice, the reserve would be created in two years. The government has procured record 22.5 million tonnes of wheat this year against the targeted 15 million tonnes.