The Cabinet will take a decision on releasing more wheat under the open market sale scheme next week, even as flour mills in Kerala are seeking a higher allocation for this month.

According to sources in the know, the Cabinet could decide on the release of as much as 70 lakh tonnes for December and January. This is part of the Government’s plan to cut its inventories with the Food Corporation of India and other State agencies that has bulged. Currently, the Centre has stocks of over 40 million tonnes of wheat.

Meanwhile, the Kerala Roller Flour Millers Association has asked the Food and Consumers Affairs Ministry to release more wheat for the State since the allocation under the open market scheme in October and November totally was 7,150 tonnes.

The State needs 35,000 tonnes this month to meet the demand for Diwali, said P.K. Ahammed, Kerala Roller Flour Millers Association President.

In a memorandum submitted to K.V. Thomas, Union Minister of State for Food, he said that even the quality of wheat offered was bad since it was from 2010-11 and 2011-12 crops. However, he stressed the need for immediate release of wheat required to meet Diwali as also Christmas demand.

Ahammed also said that there was disparity in the price at which wheat was offered in Kerala and Tamil Nadu. While mills in Kerala had to pay Rs 1,580 a quintal, units in Tamil Nadu had to pay Rs 1,523. Therefore, he said, the Centre should cut the offer price for Kerala to Rs 1,523.

He also reiterated his demand for a ban on wheat exports by private traders in view of shortage being faced in the domestic market despite a record 93.9 million tonnes production of wheat.

>subramani.mancombu@thehindu.co.in

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