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LATEST NEWS UPDATES | Government sells Rs. 900 crore of wheat to counter food price spike - Ravi Dutta Mishra

Government sells Rs. 900 crore of wheat to counter food price spike - Ravi Dutta Mishra

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published Published on Feb 16, 2023   modified Modified on Feb 17, 2023

Food inflation rose sharply to 6.19% in January from 4.58% in December, led by rising prices of most segments

Livemint.com

The union government on Wednesday sold 385,000 tonnes of wheat worth 901 crore in the open market, in the second round of a planned auction of three million tonnes it plans to offload from the central pool to counter rising prices of the key foodgrain.

The move assumes significance as India’s retail inflation has crossed the Reserve Bank of India’s upper tolerance band of 6% after a gap of two months. Consumer Price Index (CPI) inflation accelerated to a three-month high in January, driven by a spike in food prices. Inflation based on the CPI hardened to 6.52% in January, after declining to a one-year low of 5.72% in December.

“In order to address the rising price of wheat and atta in the country, as per the recommendation made by the Group of Ministers, Food Corporation of India is offering wheat for e-auction. The sale of wheat through e-auction will continue throughout the country on every Wednesday till the 2nd week of March 2023," the ministry of consumer affairs, food and public distribution said.

Food inflation rose sharply to 6.19% in January from 4.58% in December, led by rising prices of most segments. While vegetable prices eased to 11.7% in January from 15.08% in December, inflation hardened in the case of cereals, eggs, meat and fish, milk products, and oils and fat.

Wheat prices have been on the rise ever since the Ukraine war broke out in February last year as Russia and Ukraine accounted for nearly one-fourth of the global wheat production. The surge in international prices prompted India to ban wheat exports in May in order to check the rise in domestic prices.

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Ravi Dutta Mishra, Livemint, 16 February, 2023, https://www.livemint.com/economy/govt-sells-900-cr-of-wheat-to-counter-food-price-spike-11676567932588.html


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