Inflation worries: India to sell extra 20 lakh tonnes of wheat in open market
Sale from buffer stock in a desperate effort to keep the price of these commodities from rising.
In an effort to cut the price of wheat and wheat flour and combat inflation, the Centre on Tuesday announced that it will unload an additional 20 lakh tonnes of wheat in the open market.
This announcement comes on the heals of a January 25 decision of the government of India to sell 30 lakh tonnes of wheat and wheat flour (atta) in the open market from its buffer stock in an effort to keep the price of these commodities from rising.
According to the statement, the government has agreed to have the state-owned Food Corporation of India (FCI) sell wheat under the Open Market Sale Scheme (OMSS). Wheat product makers, individual dealers, flour mills, and bulk customers will be able to bid on the inventories in an online auction. According to CNBCTV18 report, a number of ministers recently proposed selling equities on the open market.
As per the decision, 50 lakh tonnes of wheat (30+20 lakh tonnes) will currently be offloaded under the OMSS. Together, the decrease in reserve price and the additional 20 lakh tonnes of wheat that will be offloaded is intended to help lower the market price of wheat and wheat products for consumers.
When the meteorological office issued a warning that above-average temperatures will predominate in key producing areas, the government convened an expert group on Monday (February 20) to assess the impact of rising temperatures on the wheat crop.
IMD said that wheat that is sensitive to temperature may experience negative impacts as a result of this warmer daytime temperature when it approaches the reproductive growth period. "High temperatures during the blossoming and maturation phases reduce yield "IMD said in a report.
India produces a single crop of wheat every year. It is sown in October and November and harvested in March.
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