Govt To Sell Additional 50 Lakh Tons Wheat, 25 Lakh Tons Rice In Open Market To Cool Prices

The government's decision comes amid a sustained and sharp rise in the price of cereals following Russia's invasion of Ukraine in February 2022

Cereal prices in India have continued to rise as unseasonal as well as uneven rainfall has taken a toll on output. ( Image Source :Getty )

The Centre on Wednesday said that it will sell additional 50 lakh tonnes of wheat and 25 lakh tonnes of rice from the central pool in the open market to contain the price rise. Food Secretary Sanjeev Chopra said, "There has been a sharp increase in prices of wheat and rice recently...The government has decided to offload 50 lakh tonnes wheat and 25 lakh tonnes wheat under the Open Market Sale Scheme (OMSS)."

This is over and above the 15 lakh tonnes of wheat and 5 lakh tonnes of rice sale under the open market sale scheme (OMSS) announced a few months ago, he added. So far, about 7 lakh tonnes of wheat has been sold through e-auction under the OMSS, while the rice sale has been negligible, he said. Chopra also said the reserve price of rice was being brought down by Rs 2 to Rs 29 per kg. "We hope these measures will bring down food inflation," Chopra said.

The government's decision comes amid a sustained and sharp rise in the price of cereals following Russia's invasion of Ukraine in February 2022. While India has already taken steps to check the rise in prices of key food items, cereal prices have continued to rise as unseasonal as well as uneven rainfall has taken a toll on output.

The ban on wheat exports, announced in May 2022, remains in place. In June this year, the government imposed stock limits on wheat for the first time in 15 years to prevent hoarding and bring down prices. Last month, the government banned exports of non-basmati white rice to boost domestic supply and keep retail prices under check during the upcoming festive season. The food ministry in a statement said that there would be no change in export policy of par-boiled non-basmati rice and basmati rice, which forms the bulk of exports. Non-basmati white rice constitutes about 25 per cent of total rice exported from the country.