Srinagar, Mar 24: With two major market intervention schemes the centre had launched sometime back to bring about stability in the wheat market expiring on March 31, prices of the commodity have begun to shoot up.
 “Even though there are still some days left for the schemes to expire wheat prices have gone up to Rs 1350 per quintal in the open market hitting the consumer interests,” said Iqbal Tramboo, president Kashmir Flourmill Association (KFA).
 According to market observers, prices of wheat are likely to shoot up further after March 31.
 In the wake of markets facing shortage of wheat and prices vaulting as high as Rs 1400 to 1500 per quintal in October, the central government had responded the situation by launching two schemes. The first – Open Market Sale Scheme (OMSS) that was launched across the country had stabilized the prices at Rs 1250 per quintal. Secondly, the centre over past six months was providing additional quota of wheat under Public Distribution System (PDS).
  “The Consumer Affairs and Public Distribution Ministry made some good efforts and asked for an additional quota from the central government, which then provided us around 70,000 quintals per month from October under subsidized rates that is Rs 650 per quintal,” Tramboo said, adding that by these schemes wheat was available in abundant quantity to the consumers.
 However, he said, both these schemes were valid up to March 31 only.
 Market observers fear once the schemes expired, the prices would rise by at least Rs 200 or more April onwards.
 They said the state government should persuade the centre to extend the schemes beyond March 31, “so that the instability likely to be caused by the price hike is averted.”
 Many consumers Greater Kashmir talked to suggested that government should intervene in the matter.
 “At a time when every other thing has become costlier, the government should try and make at least food grains available at affordable rates,” said Muhammad Subhan, a consumer at a general store here.
 Experts said the requirement of wheat in the Valley as per the population was around 1.20 lakh quintal per month, “whereas we are receiving only 20,000 quintals of wheat at present from the central government without the scheme.”
 “This means the quantity we receive under PDS is only 10 per cent of our requirement,” said KFA president.
 He said the central government provided food grains according to the population. “However, the problem is that the latest census we have is of 2000; since then population has increased largely which is not being taken into consideration while release the wheat quota to us.”
 Tramboo said if whole of the required quantity of wheat was provided by the government, people would be benefited by large.
 “The open sale rate of wheat is Rs 1250 per quintal, where as PDS rate is Rs 600, which means 50 per cent difference.”
 Tramboo said till four years back, Food Corporation of India would supply wheat under OMSS, but later they stopped. “This is because the annual wheat production was dropped down to 60 million tons. However, this year the predicted wheat production of India is 80 lakh million tons. So we fail to understand why FCI does not regularize its scheme,” he said.
 When contacted, director CAPD, Mehraj-ud-din denied that wheat prices had increased.
 “The prices have in fact come down from Rs 1400 to 1300,” he said.
 He said they were trying their best to get the market intervention schemes extended. “We are hopeful that the schemes will be extended. We have taken up the matter with (centre) and we have received positive response,” he said.

Lastupdate on : Wed, 24 Mar 2010 21:30:00 Makkah time
Lastupdate on : Wed, 24 Mar 2010 18:30:00 GMT
Lastupdate on : Thu, 25 Mar 2010 00:00:00 IST