Govt to sell rice, wheat at cheaper rates

Announcing the decision, Food and Agriculture Minister Sharad Pawar said wheat will be sold at Rs 8.42 per kg and rice at Rs 11.85. This decision will cost the exchequer about Rs 2,000 crore in six months ending November 2010.  A total of 30 lakh tonnes of wheat and rice will be sold to ration card holders at a price lower than the minimum support price (MSP), at which the government buys the grains from the market.

The MSP for wheat is now Rs 11 per kg, while for paddy it is Rs 10.50 per kg for common variety and Rs 10.80 per kg for higher quality.

This 30 lakh tonne is in addition to the quantity of wheat and rice that will be given over and above that is given under ration card quota. Now, the government provides 35 kg of rice and wheat per BPL family every month and 10-35 kg for others.