Pelosi calls on PM Govt may sell wheat to cool prices, Shah reviews food stocks
An interministerial committee, headed by Union home minister Amit Shah, reviewed the position of wheat inventories in state-owned granaries, which are “sufficient” to initiate sales to bulk buyers, such as millers and biscuit makers, a step the government is considering to calm prices, a person aware of the development said.
The panel, which comprises the ministers of food and commerce, among others, met under the chairmanship of Shah to review prices of essential commodities. The Pralhad Joshi-led food ministry said the government’s wheat reserves were adequate to intervene in private markets, a policy measure to boost supplies, after meeting all requirement of foodsecurity programmes.
The Food Corporation of India (FCI), the Centre’s main grain-handling agency, has procured 26.6 million tonnes of winter-sown wheat till June 18, marginally higher than last year’s 26.2 million tonnes, the panel was told. This is, however, lower than the procurement target of 30-31 million tonnes. The government requires 18.4 million tonnes to cater to the public distribution system, under
which 800 million people are given free grains, and other foodbased welfare schemes, the food ministry said in the meeting. So, there is a surplus available, after adjusting for buffer or emergency reserves, to release wheat into the open markets.
Shah asked officials to utilise “suitable policy interventions to ensure price stability”, the person familiar with the matter said. Last year, the government sold nearly 10 million tonne of wheat from its stocks to curb prices. Although headline consumer inflation eased to a 12-month low of 4.75% in May from a year ago, food prices remained sticky at 8.69%, driven by cereals and pulses, according to latest official data. Wheat prices were up nearly 6%.
The winter staple has become costlier despite new-season harvests touching a record 112 million tonne this year, according to official estimates.