The Food Corporation of India (FCI) is offloading adequate stocks of wheat and rice into the open market through weekly e-auctions. In this manner it aims at addressing the surging prices of essential commodities. A press release on these auctions was issued on December 15, 2023.
This move aims at meeting the demands of the Public Distribution System (PDS) and curbing inflationary trends in wheat and rice prices.
Wheat Offloading Statistics:
The government, in its latest initiative, has allocated 101.5 LMT (Lakh Metric Tonnes) of wheat for offloading under the Open Market Sales Scheme (Domestic). The reserve price for both FAQ wheat and URS wheat has been set at Rs. 2150/Qtl and Rs. 2125/Qtl, respectively. Since the commencement of the offloading on June 28, 2023, a total of 25 e-auctions have been conducted, resulting in the sale of 48.12 LMT of wheat in the open market.
Additionally, the government is supplying wheat to Semi-government/Cooperative agencies such as NAFED/NCCF/Kendriya Bhandar/MSCMFL at Rs. 21.50/Kg. These agencies convert the wheat into atta and sell it to the general public at a Maximum Retail Price (MRP) not exceeding Rs. 27.50/Kg. As of December 14, 2023, these agencies have lifted 86084 MT of wheat.
Rice Market Intervention:
In the case of rice, the government has allocated 25 LMT under the Open Market Sales Scheme (Domestic) with a reserve price of Rs. 3100/Qtl. Through e-auctions, rice is being offered at Rs. 2900/Qtl, with a differential cost of Rs. 200/Qtl covered by the Price Stabilization Fund. Notably, 1.19 LMT of rice has been sold in the open market to private traders and bulk buyers as of December 14, 2023, signifying a substantial increase compared to previous years.
The FCI Regional Offices have been actively promoting this initiative through extensive advertising, facilitating the increased participation of private entities in the open market.
Encouraging Public Participation:
To further encourage participation, the FCI has allowed bidders to bid for any quantity of rice from 1 to 2000 MT. The rice offered under the Central pool is of excellent quality, and traders are invited to actively engage in e-auctions to ensure easy and affordable availability for consumers in the market.
Regular advertisements are being carried out to inform the general public, traders, and business persons involved in rice trading and processing about the benefits of the Open Market Sales Scheme (Domestic). Interested parties can participate in e-auctions after registering with the FCI/m-junction portal.
The Food Corporation of India remains committed to ensuring a stable supply of essential food grains, contributing significantly to both PDS requirements and market stability.
