India to offer 5 million tonne wheat to bulk consumers to cool prices

India to provide 5m MT wheat, 2.5m MT rice to bulk consumers to boost supplies, stabilise prices. 28.3m MT wheat stocks as of Aug 1. Wholesale wheat prices surge to 6-month high. Govt considering cutting/abolishing 40% import tax, lowering stock limit.

India will provide 5 million metric tonne of wheat and 2.5 million tonne of rice to bulk consumers such as flour millers, as part of efforts to augment supplies and stabilise prices, a senior government official told reporters on Wednesday.

The world's second-largest consumer of wheat and rice has been attempting to boost supplies and lower prices of both staples through a slew of measures, including banning exports of non-basmati white rice and imposing stock limits on wheat.

The country has adequate stocks of wheat and rice which the government can release on the open market to stabilise prices, Food Secretary Sanjeev Chopra said on Wednesday.

As of August 1, wheat stocks in government warehouses stood at 28.3 million metric tonne, an increase from 26.6 million tonne a year earlier.

"People are hoarding wheat in anticipation of prices going up but they should realise that there are adequate stocks with the government," Mr. Chopra said.

Wholesale wheat prices in India surged to a six-month high on Wednesday on limited supplies.

"People involved in the trade should not try to take advantage of the situation by hoarding wheat," he said.