FCI sells 1.66 lakh tonnes of wheat, 17,000 tonnes of rice in 11th e-auction
The Food Corporation of India (FCI) sold 1.66 lakh tonnes of wheat and 17,000 tonnes of rice from the central pool through the 11th e-auction held on September 6, 2023. The auction was conducted to offload additional 50 lakh tonnes of wheat and 25 lakh tonnes of rice from the central pool in the open market to bulk buyers to contain cereal prices.
A total of 2 lakh tonnes of wheat and 4.89 lakh tonnes of rice were offered from across the country in the auction. The weighted average selling price was Rs 2,169.65 per quintal for FAQ (fair and average quality) wheat against the reserve price of Rs 2,150 per quintal pan-India. The weighted average selling price of URS (Under Relaxed Specifications) wheat was Rs 2,150.86 per quintal against the reserve price of Rs 2,125 per quintal.
In case of rice, the weighted average selling price was Rs 2,956.19 per quintal as against the reserve price of Rs 2,952.27 per quintal pan-India.
The government had announced last month that it would offload the additional wheat and rice to bulk buyers to contain retail prices, which have been rising in recent months. The government has also imposed a ban on wheat exports to ensure that adequate supplies are available in the domestic market.
To encourage participation of small retailers to ensure reduction in retail prices, the ministry said FCI is offering a maximum of 100 tonnes of wheat and 1,000 tonnes of rice to a buyer.
In order to avoid hoarding, big traders were kept out from the ambit of wheat sale under OMSS (D) and regular checks/inspections are being carried out at flour mills of the processors who have purchased wheat under the scheme.
The government interventions, including OMSS and ban on wheat export, have had a moderating effect on wheat prices. The all-India average retail price of wheat remained flat at Rs 30 per kilogramme and atta (wheat flour) at Rs 35.62 per kg on September 10, 2023, when compared to Rs 30.39 per kg for wheat and Rs 35.72 per kg for atta in the year-ago period.
However, rice prices are still ruling higher. The all-India average retail price of rice was quoting at Rs 42.26 per kg on September 10, 2023, as against Rs 37.44 per kg in the year ago period.
The government is monitoring the situation closely and will take further measures, if necessary, to ensure that retail prices remain affordable for consumers.
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