Government to sell 30 lakh tonnes of wheat in open market in Q2 2009-10

The government will release up to 30 lakh tonnes of wheat under the open market sale scheme (OMSS) during the six months from October 2009 to March 2010.

Addressing a meeting of roller flour millers today, minister of state for agriculture, consumer affairs, food and public distribution KV Thomas said the centre would make allocation to state governments for sale of wheat to consumers while the Food Corporation of India (FCI) will sell wheat to bulk consumers through tenders.

He said the government has removed restrictions like stock holding limits on wheat to facilitate purchase of wheat by private trade during the harvesting season. He expressed the hope that the roller flour milling industry would source its raw material during the harvesting season and not depend solely on open market sales by the government for meeting its input requirements.

The government has allowed export of up to 6.5 lakh tones of wheat products during 2009-10, he said. However, keeping in view the likely fall in foodgrain production in kharif 2009-10, there is a need to conserve stocks of foodgrains with the country and it is not found feasible to permit export of wheat at this stage (apart from the export of wheat products) already allowed by the government, the minister added.