In yet another attempt to fight the rising foodgrain prices and inflation, the central government has decided to sell its surplus wheat and rice stocks in open market.

Handing over the responsibility to food ministry for fixing the quantity and time of sale, the Cabinet Committee on Economic Affair (CCEA) nodded its head on Thursday to the open market sale scheme for wheat and rice.

The decision taken up by the food ministry will be based upon the recommendations of the committee of secretaries.

The notification regarding the validity was extended by the Union Cabinet according to which the state government will have to regulate stocking of wheat, paddy and pulses by the traders by six months to April 2009.

After the Cabinet meeting was over, P R Dasmuni, minister of information & broadcasting reported, “For keeping a check on prices and in the interest of farmers, the government has decided to extend the notification for imposition of stock limits on wheat and pulses till April 30, 2009. Paddy has also been included in the notification.”

Other than this, the merger of two centrally sponsored schemes was also approved by the cabinet. Mr Dasmunsi informed, “Strengthening of Revenue Administration and Updating of Land Records and Computerisation of Land Records — which will be replaced with a modified scheme. The new scheme will be known as the National Land Records Modernisation Programme (NLRMP).”

The Cabinet also approved the proposal for establishment of National Agri-Food Biotechnology Institute (NABI), and a Bioprocessing Unit (BPU) at Mohali, Punjab in its knowledge city.

At the estimated cost of Rs 380 crores, NABI and BPU will set up as autonomous institutions under the department of biotechnology over a period of five years.

Prime Minister Manmohan Singh has also constituted a three-member ministerial team with the aim of studying the medical facilites for journalists and their family members under the Central Government Health Scheme (CGHS).

The Centre will allocate food grain to state governments and Union territories for distribution to retail consumers under the open Markey sale scheme for rice and wheat.

However the Food Corporation will sell the stock by inviting bids, in case of bulk buyers.

The selling price for release of food grain to state and Union territories will be fixed by high-level panel of FCI.