The government is gearing up to release a more substantial quantity of wheat stocks into the open market, a move aimed at ensuring price stability as the festive season approaches, according to Food Secretary Sanjeev Chopra.
This decision comes on the heels of an approximately 11 per cent increase in wholesale wheat prices over the past four months, culminating in a seven-month high in August. This surge in prices raised concerns about both the affordability and availability of wheat.
In response to the escalating wheat prices, the food secretary has unveiled plans to augment the release of surplus wheat stocks into the open market. This strategic move is designed to counter the price hikes that often accompany the festive season.
During August, the government had already taken measures to provide 5 million metric tons of wheat and 2.5 million tons of rice to bulk consumers, with a particular focus on assisting flour millers.
Chopra underscored the fact that India possesses substantial reserves of both wheat and rice, which can be made available in the open market to help stabilize prices.
Meanwhile, the leader of a prominent Indian industry association had previously urged authorities to eliminate the 40 per cent import tax on wheat the previous month, believing that such a move would facilitate the procurement of grain from international sources.
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