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Govt to auction 5 million tonnes of wheat

Faced with the problem of acute shortage of godown space for storing wheat, the government on Saturday decided to auction five million tonnes of the commodity through open tenders and explore the possibility of exporting an unspecified quantity to SAARC countries through barter sale or deferred payment.

The decision was taken by the Cabinet Committee on Prices as the wheat stock with the government had touched 25.4 million tonnes against the buffer stock norm of 14.3 million tonnes, forcing the Food Corporation of India to store it in the open.

On the sale of wheat to member countries of the South Asian Association for Regional Cooperation, or SAARC, Shanta Kumar said the External Affairs Ministry would approach such countries to decide on the mode of export.

Briefing reporters on the CCP meeting, Consumer Affairs and Public Distribution Minister Shanta Kumar said no decision was taken on fixing any minimum price for the auction of wheat through tenders which would take place in Punjab and Haryana.

The economic cost of wheat for the FCI is Rs 9, while it is sold for the below poverty line families at half of this price through the public distribution system, or PDS.

Asked whether the government would auction wheat even if it amounted to selling it below the economic cost, he said this aspect would be taken care of during the tender process.

The auction would be open to even the state governments. In the current Rabi season, the government had procured 16 million tonnes of wheat, against 15 million tonnes bought last season.

Shanta Kumar said the government had a stock of 40 million tonnes of foodgrains, including wheat, against a total buffer stock norm of 243 million tonnes. This was posing a serious storage problem.

UNI

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