The Hindu Business Line : Govt allocates more wheat under open market scheme

NEW DELHI: The government has increased wheat allocation to flour millers and other bulk users, by 27,500 tonnes to 10 lakh tonnes, under the open market scheme.

Earlier, the government had decided to sell 9.72 lakh tonnes of wheat. It has now been revised upward after reviewing the quantity of wheat lifted by the states since the launch of the scheme in September 2008.

“Keeping in view the responses received in the tenders floated by Food Corporation of India (FCI), the state-wise allocations have been reviewed,'' the government said in a statement.

Under the revised allocation, the government is offloading extra one lakh tonnes of wheat to Delhi, 30,000 tonnes to Tamil Nadu, 25,000 tonnes to Karnataka, 20,000 tonnes to Assam and 10,000 tonnes each to Haryana, Punjab and Orissa, it said. On the con trary, it has reduced the quantity by 45,000 tonnes in Maharashtra, 30,000 tonnes each in Madhya Pradesh and Bihar, and 20,000 tonnes each in Himachal Pradesh and Rajasthan, it added.

The government said that the revised allocation will be sold directly to bulk consumers through open tenders issued by FCI, as result of which the validity of the allocation has also been extended for till February 28. The balance quantity of wheat avai lable in various states and union territories may be tendered by FCI in suitable tranches.

Under the OMSS, the Centre intervenes in the market to contain foodgrain prices by selling from the buffer stock. - PTI

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