The government today decided to allocate 5 million tonnes of additional foodgrains to poor families and allow sale of 3 million tonnes of wheat to bulk users at cheap rates. This will cost the exchequer a total of 10,000 crore rupees.

Food and Consumer Affairs Minister Prof K V Thomas told reporters after the meeting Empowered Group of Ministers, EGoM headed by Finance Minister Mr. Pranab Mukherjee todat took the decison to this effect. It also agreed to allow 3 million tonnes of wheat for sale through Open Market.

Prof. Thomas said for above poverty line, APL families the government had allocated 2 million tonnes of foodgrains last fiscal, but only about 50 per cent was lifted by states.

AIR correspondent reports the decision comes in the backdrop of government facing a storage crunch. Foodgrain stocks in godowns are piling up and hold a record 82 million tonnes against a capacity of 63 million tonnes. Under public distribution system, BPL families get wheat at 4.15 rupee per kg and rice at 5.65 rupees per kg.

The rate for APL is 6.10 rupees for wheat and 8.30 rupees for rice. The EGoM fixed the wheat price in OMSS at 1,170 rupes per quintal against the current support price of 1285 rupees per quintal. The entire freight cost would be borne by the government.