Roller flour mills in Kerala have urged the Union Food Ministry to cut the reserve price to bid for wheat that will be sold by the Food Corporation of India through open sale scheme.
“While the reserve price was raised to Rs 1,285 in August, now we are told that the reserve price is Rs 1,553.14 since it includes freight charges from Ludhiana to Thiruvananthapuram. This is 33 per cent higher than prices announced in July when the open sale began,” said P.K. Ahammed, Chairman of Kerala Roller Flour Millers Association.
Already mills in Kerala were selling wheat products such as atta, maida and sooji at a price (Rs 200 a quintal) lower than in other States. “Such a steep hike will not only affect mills but also sweet makers and bakeries,” he said.
Making wheat available at a higher price despite a record production of 93.9 million tonnes will lead to inflation resulting in costlier grains, pulses and other food items. “Kerala mills will also have to pay a higher price for wheat compared with Karnataka or Tamil Nadu due to its distance from Ludhiana,” Ahammed said.
In a letter to the Union Minister of State for Food K.V. Thomas, he said that the Centre should, at least, eliminate the freight charges while selling wheat through the open sale scheme for bulk consumers.