Zeenews Bureau
New Delhi: Food and Agriculture Minister Sharad Pawar on Tuesday stated that the cost of wheat would be lowered to about Rs 200 per quintal in the open market for sale to retail consumers to rein in runaway food inflation.
"The wheat price (under Open Market Sale Scheme) has been reduced by nearly Rs 200 a quintal from the price fixed earlier," Pawar told reporters on the sidelines of a function here. He added that it has been done only for retail consumers.
Pawar announced the reduction in the open market price for wheat sold through the Food Corporation of India (FCI).
However, there would be no lowering of price in sugar till December 2010, the minister said further.
India needs to import another 2 million tonnes (MT) of sugar in 2009-10 season to meet the domestic demand, an industry body had earlier stated. The cost of sugar has doubled this year at Rs 40/kg
The sugar output of India is estimated at a little lower than 16 million tonnes in 2009-10 (October-September), while the domestic demand is pegged at 23 million tonnes.
The Centre allowed imports of raw and refined sugar at zero duty from April to augment domestic availability.
Earlier, the Centre had decided to sell wheat to states at the minimum support price of Rs 1,100 per quintal, plus transport cost. Under the scheme, the Centre had allocated to the states 10 lakh tonnes of wheat each during October-December and January-March for distribution to retail consumers.
The scheme, however, did not receive good response and the off-take by the state governments had been very less. There has been demand from States for supply of wheat at BPL rate (Rs 4.15 a kg).
Beside states, the government had earmarked 10 lakh tonnes tonnes for bulk consumers for the October-March period. Even bulk consumers, like flour millers, are demanding lower rates.
Food inflation had touched a more than 10-year high of 19.95 per cent as of December first week.
First Published: Tuesday, December 22, 2009, 19:17