The reserve price for wheat under OMSS has been fixed at Rs1,500 per quintal plus freight charges for old crop and 5% premium for new crop
The union government on Thursday approved sale of 10 million tonnes of wheat from the stocks of Food Corp of India (FCI) in the open market to boost domestic supply and check prices.
A decision in this regard was taken at a meeting of the Cabinet Committee on Economic Affairs (CCEA), headed by Prime Minister Narendra Modi.
"The CCEA has cleared sale of about 10 million tonnes of wheat via the open market sale scheme (OMSS) to bulk buyers," sources said.
The reserve price under OMSS has been fixed at Rs1,500 per quintal plus freight charges for old crop and 5% premium for new crop.
Wheat would be sold through e-tendering process by FCI with an aim to improve domestic supply of wheat and check prices, besides reducing storage pressure on the state-run company.
Wheat prices have firmed up in the last few days. Wholesale price of wheat has increased to Rs19 per kg in the national market in July, from Rs16.10 per kg in the same month last year, as per official data.
In 2013-14, the government had announced sale of 8.5 million tonnes of wheat via OMSS, but was able to sell only 5.8 million tonnes, earning about Rs9,310 crore.
Till early this month, the FCI had a wheat stock of 40 million tonnes, against the requirement of 20 million tonnes.
The country had produced a record 95.60 million tonnes of wheat in the 2013-14 crop year.
With the Cabinet approving the amendments to the long pending Insurance Laws (Amendment) Bill, it will now be taken up by Parliament
The Cabinet on Thursday approved 49% foreign direct investment (FDI) in insurance companies through the Foreign Investment Promotion Board (FIPB) ensuring management control in the hands of Indian promoters.
"The Cabinet Committee on Economic Affairs (CCEA) has approved raising of FDI cap in the insurance sector to 49% from 26%," sources said after a meeting of the CCEA, headed by Prime Minister Narendra Modi.
With the Cabinet approving the amendments to the long pending Insurance Laws (Amendment) Bill, it will now be taken up by Parliament.
In his budget speech, Finance Minister Arun Jaitley had said that the insurance sector is investment starved and there is a need to increase the composite cap in the sector to 49%, with full Indian management and control, through the FIPB route.
The move would help insurance companies to get much needed capital from overseas partners.
The proposal to raise FDI cap has been pending since 2008 when the previous United Progressive Alliance (UPA) government introduced the Insurance Laws (Amendment) Bill to hike foreign holding in insurance joint ventures to 49% from the existing 26%.
However, the Bill could not be taken up in the Rajya Sabha because of opposition from several political parties, including the Bharatiya Janata Party (BJP).
The insurance sector was opened up for private sector in 2000 after the enactment of the Insurance Regulatory and Development Authority Act, 1999 (IRDA Act, 1999).
This Act permitted foreign shareholding in insurance companies to the extent of 26% with an aim to provide better insurance coverage and to augment the flow of long term resources for financing infrastructure.
The industry has been demanding, for long, that there should be an increase in the FDI limit so that there are adequate funds for expansion of the sector.