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Market News
Haryana cooperative body to sell 1 lakh tonne wheat in open market.
Aug 10, 2022
The Haryana State Cooperative Supply and Marketing Federation (Hafed), the apex cooperative federation of Haryana, on Tuesday decided to sell more than 1,00,000 tonnes of wheat in the open market. This comes after the flour milling industry recently met the food secretary and informed him about the dwindling availability of wheat in the market.
The wheat Hafed has decided to sell is from grain it procured at above minimum support price (MSP) during commercial operations in the ongoing 2022-23 rabi marketing season.
The central government has been taking a series of measures to control food inflation ahead of the festival season of Dussehra and Diwali. Domestic wheat prices started moving up since July, as a severe heat wave cut wheat production and unregulated exports reduced domestic stocks.
In the meeting last week, wheat flour industry executives raised concerns about difficulty in getting wheat in the open market to keep their mills running and requested the government to sell the grain in the open market. As wheat prices did not decline even after an indirect message from the central government to traders and stockists after the meeting, the ministry put restrictions on export of refined wheat flour and suji on Monday. Whole wheat flour (atta) had already been brought under export restrictions. Thus, all the wheat products now need to get approval of a ministerial committee for exports.
Hafed, which used to procure about 50,000 tonnes of wheat under MSP operations, had decided to buy 2,00,000 tonnes above the MSP for exports. The agency was getting many enquiries from Indian and foreign buyers to purchase wheat as global supplies had shrunk due to the Ukraine-Russia war. From the wheat it had procured for exports, Hafed has offered 1,04,268 tonnes of Haryana and Madya Pradesh origin wheat for sale in the open market. 'We will also see the prices that buyers will be willing to pay,' said an official of Hafed.
The ministry of consumer affairs, through its agency National Cooperative Consumers' Federation of India, has decided to buy 2,000 tonnes of imported urad, whose prices have increased about 15% in the last six weeks.
economictimes.indiatimes.com
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