June 23, 2010
India said to plan five million tonnes of grain sales
India may sell five million tonnes from state grain reserves over the next nine months to damp prices, two government officials involved in the planning said.
A preliminary decision was taken earlier this month by a group of ministers led by Finance Minister Pranab Mukherjee, said the officials, who did not want to be identified as the information has not been announced publicly. A final plan may be approved at a meeting on Friday (June 25) in New Delhi, the officials said.
A drought in India last year damaged crops of rice, sugar cane and oilseeds, creating shortages since November. Wheat prices have increased 10% in the past 12 months, according to data by Bloomberg.
July-delivery wheat futures fell 0.4% to INR1,267 (US$27.6) per 100 kg on the National Commodity & Derivatives Exchange in Mumbai.
Inflation is also gaining strength in China, the third-biggest economy, as consumer demand rises. The country has booked the most corn imports in 14 years, and is paring its stockpiles to cool an 18% gain in local prices of the grain in the past year.
India's government may sell 3 million to 3.5 million tonnes of wheat at prices it paid growers, the officials said.
