No takers for open market wheat
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01/10/2008
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Business Standard (New Delhi)
Ajay Modi / New Delhi October 1, 2008, 20:44 IST
Two weeks after the Union food ministry made open market sale of 909,000 tonnes of wheat operational, the state governments have not lifted a single grain even though the festive season has set in. It is learnt that there are no buyers at the rates fixed by the ministry.
States such as Uttar Pradesh and Assam have communicated that they do not plan to lift at these rates. The sale was planned keeping in mind the additional demand during the festive season when prices usually shoot up.
States are supposed to lift the wheat from Food Corporation of India (FCI) warehouses and distribute it to retail consumers (whose monthly consumption is 30 tonnes). Wheat has a weight of 1.38 per cent in the wholesale price index, which has been hovering over the 12 per cent mark for the past few weeks.