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Informist, Thursday, Nov. 28, 2024

 

MUMBAI – The Food Corp. of India will offload 2.5 million tonnes of wheat in the open market under the Open Market Sales Scheme for the financial year 2024-25 (Apr-Mar) through e-auction to private parties, the Ministry of Consumer Affairs, Food, and Public Distribution said in a release on Thursday. Flour mills, manufacturers of wheat products, processors, and end users of wheat are allowed to participate in e-auctions. 

 

Earlier in the day, Informist had exclusively reported quoting an official that FCI would offload 2.5 million tonnes of wheat under the open market sales scheme by next week. However, the release did not mention when the FCI would start the e-auctions to sell wheat.

 

For the current year, the government has set the reserve price of fair and average quality wheat at INR 2,325 per 100 kg, and the price of wheat under reduced specifications at INR 2,300 per 100 kg, according to the release.

 

Under the open market sales scheme, the government fixes the price of rice and wheat and sells the grains to bulk buyers such as states and private millers through electronic auctions. The government's weekly e-auctions of rice and wheat are meant to cool down retail prices across the country.

 

During this month, wheat prices in Rajasthan's Kota market rose to INR 2,800 per 100 kg, from INR 2,700 last month. Similarly, wheat prices in Navi Mumbai's Vashi market surged to INR 3,300 per 100 kg from INR 3,150 per 100 kg last month.  

 

Typically, FCI starts wheat auctions in July or August. This year, owing to lower procurement and falling stocks, it delayed open market sales. But this year, the government delayed open market sales of wheat owing to reduced procurement in Apr-Jun. It could not meet the target of procuring 30-32 million tonnes for the rabi marketing season, which is co-terminous with the financial year. Procurement of wheat ended Jun. 30, with the Centre buying 26.6 million tonnes from farmers, slightly more than 26.2 million tonnes procured in 2023-24.  

 

During FY24, wheat sales under the open market scheme were at an all-time high of 9.4 mln tn. Last year, the reserve price for fair and average quality wheat was 2,150 rupees per 100 kg, and 2,125 rupees for reduced specification wheat. End

 

Reported by J. Navya Sruthi

Edited by Akul Nishant Akhoury

 

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