Food Corporation of India boosts market supply through e-auction of wheat, rice
New Delhi: In a proactive measure to increase availability of essential commodities in the open market and reduce inflationary trends, Food Corporation of India (FCI) has successfully conducted 25 e-auctions resulting in procurement of 48.12 lakh metric tonnes (LMT). Wheat has been sold. Under Open Market Sale Scheme (Domestic).
According to a press release from the Ministry of Consumer Affairs, Food and Public Distribution, this strategic move is in line with the government’s directives to ensure stable supply of wheat and rice not only for the Public Distribution System (PDS) but also for effective market. Interference.
As on December 14, 2023, the central pool stock of food grains is 181.79 LMT wheat and 182.86 LMT rice, totaling 364.65 LMT.
In the current Kharif Marketing Season (KMS) 2023-24, substantial quantity of 354.22 LMT paddy equivalent to 237.43 LMT rice has been procured so far, ensuring a strong base for the Public Distribution System.
To address rising inflation concerns and increase the supply of wheat and rice in the market, FCI has launched a series of e-auctions. For wheat, the government allocated 101.5 LMT under the Open Market Sale Scheme (Domestic), with the reserve price set at Rs 2150 per quintal for FAQ wheat and Rs 2125 per quintal for URS wheat.
A total of 25 e-auctions have been conducted till December 14, resulting in successful sale of 48.12 LMT wheat in the open market. Additionally, the Government is facilitating distribution of wheat at Rs 21.50 per kg to semi-government/cooperative agencies like NAFED/NCCF/Kendriya Bhandar/MSCMFL.
These agencies will convert wheat into flour and sell it to the general public at an MRP not higher than Rs 27.50 per kg. As per the press release, till the same date, 86,084 MT of wheat has been lifted by these agencies.
In parallel, FCI is actively addressing rice market dynamics. For rice, the government allocated 25 LMT under the Open Market Sale Scheme (Domestic), with the reserve price set at Rs 3100 per quintal.
Through e-auction, rice is offered at Rs 2900 per quintal, with the differential cost of Rs 200 per quintal covered by the Price Stabilization Fund.
Notably, 1.19 LMT rice has been successfully sold in the open market to private traders and bulk buyers till December 14, 2023. FCI regional offices have played an active role in promoting this initiative through extensive advertising, read the release.
To encourage wider participation, bidders are now allowed to bid for any quantity of rice from 1 to 2000 metric tonnes. FCI emphasizes that the rice offered under the central pool is of excellent quality, inviting active participation from traders to ensure easy and affordable availability to consumers in the market.
This comprehensive strategy of Food Corporation of India aims to increase supply in the market, stabilize prices and ensure that essential commodities reach consumers efficiently, thereby contributing to the economic stability of the country.
