The Centre will release five million tonnes of wheat in the open market to enhance availability and maintain a check on prices.
The wheat would be available directly from depots for traders and retail buyers at a reserved price of approximately Rs. 12.54 paise. Wheat is selling in Delhi markets at about Rs. 14 per kg.
This decision was approved here on Friday by the empowered group of ministers (EGoM) chaired by Pranab Mukherjee. The wheat released for sale under the Open Market Sale Scheme (OMSS) would be in addition to the 3 million tonnes released last year through State governments.
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The meeting however, deferred the decision on reducing the levy obligation on sugar millers from the present 20 per cent to the proposed 16 per cent saying that the sugar availability and price situation was still vulnerable. Levy sugar is sold to Below Povertyline beneficiaries of the public distribution system.
The EGoM also decided to retain the zero duty on wheat and sugar imports in view of the high food inflation. India has imported about 6.1 million tonnes of sugar since February 2009, according to industry sources.
Wheat will be sold from the government depots between July and March at acquisition cost plus freight from Ludhiana to State capitals. Small buyers and traders would be able to lift one tonne per day during the period. Bulk buyers would have to go through the process of tenders as before.
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On the proposed National Food Security Bill, the chairman decided that it would be discussed after Sonia Gandhi-headed National Advisory Council takes a view on it.