The Indian government has decided to change the norms and will release one million tonnes (10 lahktonnes) of wheat to sell in the open market in line with its goal to boost domestic availability and to cool down prices that has been on an upward trend recently.
Based on the previous norms, strategic reserves set a 3 million tonnes of wheat and 2 million tonnes of rice quota on April 1 of a financial year.
But the government turned things around and decided to have 3 million tonnes of rice and two million tonnes of wheat, Food Minister Ram Vilas Paswan highlighted on Thursday.
He also added that there are already 12 lahktonnes of wheat imported by private traders, making the commodity one hundred per cent available in the stock market.
The additional supply of wheat commodity will help stabilize prices that have surged by Rs 50 quintal on Wednesday amid the increasing offtake by flour mills.
The wheat production scored higher in 2015-2016 as it climbed to 93.5 million tonnes compared to 86.53 million tonnes produced last year.
Prices of crude oil has yet to recover from the red zone and continued its losing streak as it closed sharply lower on Thursday after the US Energy Information Administration showed an upbeat inventories, while investors grew skeptical about OPEC’s planned output cut.
The US government reported that stockpiles of oil in the country grew by 14.4 million barrels last week while energy monitoring service Genscaperegistered 1.2 million barrels surge.
International benchmark Brent crude futures lost 51 cents, or 1.1%, to close at $46.35 per barrel.
Its US counterpart, the West Texas Intermediate, shed 68 cents, or 1.5%, to finish at $44.66 per barrel.Investors, meanwhile, were skeptical if the plan to cut oil production and stabilize prices will be reached of the Organization of the Petroleum Exporting Countries, who will conduct another meeting on November 30 in Vienna.