Question : SALE OF WHEAT IN OPEN MARKET



(a) whether the Government has sanctioned Rs. 40,000 crore for implementing a scheme to sell wheat in the open market in order to control prices;

(b) if so, the details thereof;

(c) whether the said wheat was procured at Rs. 1,000 per quintal;

(d) if so, whether the States have sold the same at much higher prices and also charge extra for handling; and

(e) if so, the details thereof and the reasons therefor?

Answer given by the minister


MINISTER OF STATE IN THE MINISTRY OF AGRICULTURE AND MINISTER OF STATE IN THE MINISTRY OF CONSUMER AFFAIRS, FOOD & PUBLIC DISTRIBUTION(PROF. K.V. THOMAS)

(a): Government has not sanctioned separately any amount for Open Market Sale Scheme. However, Government has allocated 20.65 lakh tonnes wheat to States/UTs for distribution to retail consumers & 20.8 lakh tonnes of wheat for tender sale to bulk consumers. Similarly, 5 lakh tonnes wheat has been allocated for tender sale to small processors of wheat in order to control rising trend in prices of wheat in the open market. Lifting of these allocations has been extended upto September 2010 for all States. Recently it has also been decided by Government to sell wheat from FCI godowns to traders also.

(b): State/UTs wise details of allocation of wheat for retail consumers and for bulk consumers are at annexure-I and II respectively.

(c): The wheat stocks being sold under the scheme were procured in different crop years at the Minimum Support Price notified by the Government for each year.

(d) & (e): FCI has released wheat to States / UTs for distribution to retail consumers at a price of Rs. 1080 (MSP of wheat for Rabi Marketing Season 2009-10) plus railway freight from Ludhiana to State Capital and road freight from rail head to State Capital, wherever applicable. States have been permitted to add upto to a maximum of Rs 200 per quintal in this price on account of handling and transportation cost etc.

In case of wheat for tender sale to bulk consumers FCI has released the same at a rate of acquisition cost of wheat in Punjab in 2008-09 plus railway freight from Ludhiana to State capital plus road freight from rail head to the State capital wherever applicable.