India to offer extra wheat to biscuit firms, flour mills

NEW DELHI Sat Nov 10, 2012 4:42pm IST

A dumper unloads wheat as a crane loads onto a cargo ship at the Mundra port in Gujarat September 24, 2012. REUTERS/Amit Dave/Files

A dumper unloads wheat as a crane loads onto a cargo ship at the Mundra port in Gujarat September 24, 2012.

Credit: Reuters/Amit Dave/Files

Related Topics

NEW DELHI (Reuters) - India will offer an extra 6.5 million tonnes of wheat to commercial biscuit makers and flour millers at cheap prices as it seeks to trim bulging stocks and keep a lid on local prices, the government said on Saturday.

India, the world's second-biggest rice and wheat producer, has been struggling to store huge stockpiles of the staples after bumper harvests since 2007. Some 6 million tonnes are still under tarpaulin at risk of decay.

To avoid further damage, the government freed up 3 million tonnes of wheat in June for sale to bulk consumers such as biscuit makers and flour mills at $210 per tonne. The following month, it allowed 2 million tonnes of wheat exports.

The government also approved allocating 500,000 tonnes each of wheat and rice to sell to states.

(Reporting by Mayank Bharadwaj; Editing by Toby Chopra)

FILED UNDER:

REUTERS SHOWCASE

Market Eye

Market Eye

Sensex, Nifty gain for third day; defensives in focus   Full Article 

Oil Prices

Oil Prices

Brent climbs above $62 as Asian markets open strong  Full Article 

Tracking Gold

Tracking Gold

Gold inches up but holds below $1,200 on robust equities, dollar  Full Article 

Cyber Attacks

Cyber Attacks

China condemns cyberattacks, but does not mention North Korea  Full Article 

Connecting Markets

Connecting Markets

China stock connect scheme scorecard throws up surprises  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device  Full Coverage