Kerala unhappy with open market wheat sale

It is suggested that the surplus wheat is to be distributed through the ration shops rather than selling in the open market at Rs.650 a quintal, by Kerala food ministry. It is further stated that the open market scheme, announced by the FCI on Thursday, was biased against the southern States and favoured private agencies in the northern States.

The State Governments were to meet heavy transportation and handling costs from Punjab for lifting of bulk quantities of wheat, though the scheme was provided. The State Governments would find it difficult to obtain wagons for transport of the grains from the Railways and it is also disadvantage for southern states, as said.

There is no minimum quantity specification for State Governments to lift stocks from the FCI. Hence it is would be better to allot the wheat at the specified price for distribution through the ration shops, as added. Currently, the issue price charged by the Centre for wheat distributed through ration shops was Rs. 8.30 a kg. This was being given to the card holders at a price of Rs.8.90 a kg. Offtake would improve if it is sold at a lower price, as reported.

Offtake of grains from the ration shops had increased following reduction in price of rice supplied to the above poverty line category of cardholders. The FCI was proposing to sell wheat in the open market as stocks were piling up, by the Kerala ministry.


Market Update
(Food Grains)