October 29, 2009
India approves 500,000 tonnes wheat sale from government stocks
India's federal government has allowed the sale of 500,000 tonnes of wheat at prices higher than current state-set buy price from farmers, a senior food ministry official said Wednesday (October 28).
The wheat industry had opposed the sale as the price band the government was considering was higher than market prices, fuelling a rally in local spot and wheat futures.
The price fixed by state-run Food Corporation is INR1,389.95 (US$29.55) to INR1,789.70 (US$38.05) per 100 kilograms for wheat sales in October, the official said.
The current state-set price for the fiscal 2008-09 was INR1,080 per tonne.
Besides, the federal government has also approved sale of 1 million tonnes of wheat and 500,000 tonnes of rice to state governments, the official, who didn't wish to be identified said.
US$1 = INR47.03 (Oct 29)
