Govt to boost cereal supply to tackle price rise

NEW DELHI: The Union government on Wednesday announced it would push millions of tonnes of additional cereals from state-held stocks to cool prices, amid stubbornly high food prices despite a raft of anti-inflation measures undertaken recently

- Zia Haq

The government is already offering cereals through the so-called open-market sales scheme, under which grains are auctioned off to private traders to soften prices.

While markets have so far bought state-held wheat in sufficient quantities, they have not adequately responded to rice auctions by the government, Union food secretary Sanjeev Chopra said.

The government will therefore release 5 million tonnes of additional wheat and 2.5 million tonnes of rice through further auctions, Chopra said. The government has also decided to reduce the reserve price of rice, from 31 a kg to ₹29 a kg, to improve "offtake", or quantities actually sold, he said.