<p>The government is likely to seek Cabinet approval this time for releasing 10 million tonne wheat under the open-market sale scheme for this financial year to offset the impact of inflation on consumers.<br /><br /></p>.<p>“The Cabinet note should be ready in a day or two. We will send it for the Cabinet's approval at its next meeting,” said a food ministry official.<br /><br />Sources said the ministry was initially keen on increasing the base price of wheat sold under the scheme to include incremental carrying costs, but there are concerns that such a move might add to the food inflation. “We have left it to the Cabinet to take a call on the prices,” said the official.<br /><br />In the last financial year, the government had offered 10 million tonnes of wheat and 500,000 tonnes of rice under the open-market sale scheme, of which about 6.1 mn tonne of wheat was sold. <br /><br />“There is a possibility that last year's formula will be followed this year as well, and the base price will remain at Rs 1,500,” said the official.<br /><br />“There is a possibility that last year's formula will be followed this year as well, and the base price will remain at Rs 1,500,” said the official.<br /><br />The government is keen on liquidating some grain from its stocks to ensure ample supplies in the market.<br /><br />At the start of this month, the government had 39.8 mn tonnes of wheat in stock—much higher than the July 1 buffer stock norm of 17.1 mn tonnes.</p>
<p>The government is likely to seek Cabinet approval this time for releasing 10 million tonne wheat under the open-market sale scheme for this financial year to offset the impact of inflation on consumers.<br /><br /></p>.<p>“The Cabinet note should be ready in a day or two. We will send it for the Cabinet's approval at its next meeting,” said a food ministry official.<br /><br />Sources said the ministry was initially keen on increasing the base price of wheat sold under the scheme to include incremental carrying costs, but there are concerns that such a move might add to the food inflation. “We have left it to the Cabinet to take a call on the prices,” said the official.<br /><br />In the last financial year, the government had offered 10 million tonnes of wheat and 500,000 tonnes of rice under the open-market sale scheme, of which about 6.1 mn tonne of wheat was sold. <br /><br />“There is a possibility that last year's formula will be followed this year as well, and the base price will remain at Rs 1,500,” said the official.<br /><br />“There is a possibility that last year's formula will be followed this year as well, and the base price will remain at Rs 1,500,” said the official.<br /><br />The government is keen on liquidating some grain from its stocks to ensure ample supplies in the market.<br /><br />At the start of this month, the government had 39.8 mn tonnes of wheat in stock—much higher than the July 1 buffer stock norm of 17.1 mn tonnes.</p>
