labels: economy - general, agriculture, trade
Government fights price rise by releasing wheat in open marketnews
21 February 2007

New Delhi: The government of India has decided would release 365,000 tonnes of the grain to states for sale in open markets in February and March to curb prices.

The food ministry said the wheat would be released by the state-run Food Corp. of India at Rs986.06 per 100kg, and would be sold to consumers.

The ministry said the institutions should distribute the wheat to consumers on a no profit, no loss basis, and only reasonable handling and transportation cost should be added to the price.
If states want to distribute it in the form of wheat flour, they could add a reasonable milling charge, it said.

Maharashtra and Karnataka would receive 60,000-tonne for sale, while 30,000 tonne would be released in Delhi, and 25,000 tonne in Kerala. More wheat will be released in to other states.
India has forecast production of 72.5 million tonne of wheat in 2007 against output of 69.4 million tonne in 2006, when it was forced to import 5.5 million tonne of the grain.

Wheat at Delhi markets was being sold at around 1,060 rupees per 100 kg.


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Government fights price rise by releasing wheat in open market