NEW DELHI: The government will announce its new policy for low-priced wheat sale in the open market by August 15. A CoS meeting will prepare a blue-print for unveiling the new policy on Friday in New Delhi. About a fortnight back, the Union agriculture minister Sharad Pawar announced that the Centre plans to release 60 lakh tonnes of wheat in the open market to check prices.
The government is planning to allow access to reasonably-priced non-branded wheat which will, however, be more expensive than above poverty line (APL) and below poverty line (BPL) issue price of the PDS. That, in effect, could save the government a fat increase in food subsidy.
"With this announcement, speculators have been warned not to boost wheat prices through hoarding. The price of wheat has remained steady in the recent past," minstry sources maintained. Although wheat wholesale price has remained steady for some weeks now, it has refused to fall.
That is what appears to be bothering the government and pointing to the active involvement of speculators. The higher output and record procurement of wheat should have increased the comfort level of the government on steady wheat WSP.
However, the big procurement has triggered apprehensions about the availability of wheat in the open market. Retail price of wheat, particularly branded wheat, remains high, affect-ing consumers.
Wheat WSP currently rules in the Rs 1,080-1,100 per quintal range. In sourthern markets, the price is pegged higher at an average Rs 200 per quintal on account of transport and other charges.
The high output in the 2007-08 season is viewed as the key reason why wheat WSP is holding steady. Wholesale prices of wheat fell noticeably by Rs 15 a quintal in early June on account of reduced demand from roller flour mills.
The government is planning to allow access to reasonably-priced non-branded wheat which will, however, be more expensive than above poverty line (APL) and below poverty line (BPL) issue price of the PDS. That, in effect, could save the government a fat increase in food subsidy.
"With this announcement, speculators have been warned not to boost wheat prices through hoarding. The price of wheat has remained steady in the recent past," minstry sources maintained. Although wheat wholesale price has remained steady for some weeks now, it has refused to fall.
That is what appears to be bothering the government and pointing to the active involvement of speculators. The higher output and record procurement of wheat should have increased the comfort level of the government on steady wheat WSP.
However, the big procurement has triggered apprehensions about the availability of wheat in the open market. Retail price of wheat, particularly branded wheat, remains high, affect-ing consumers.
Wheat WSP currently rules in the Rs 1,080-1,100 per quintal range. In sourthern markets, the price is pegged higher at an average Rs 200 per quintal on account of transport and other charges.
The high output in the 2007-08 season is viewed as the key reason why wheat WSP is holding steady. Wholesale prices of wheat fell noticeably by Rs 15 a quintal in early June on account of reduced demand from roller flour mills.
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