FCI to sell 100,000 tn wheat Wed under open market scheme, unch from wk ago
This story was originally published at 18:20 IST on 9 December 2024
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By Afra Abubacker
NEW DELHI – The Food Corp. of India will offer 100,000 tonnes of wheat under the open market sales scheme on Wednesday, unchanged from the previous week, despite demand from millers to increase the quantum, an FCI official told Informist.
Millers and processors have been urging FCI to offload more wheat from its coffers, as wheat prices have increased amid tight supply in the market. They want FCI to sell more wheat per auction as well as increase the total allocation for the year. "If FCI is not selling more wheat, market prices may rise to INR 3,500 (per 100 kg) in a month," a Punjab-based miller said.
"Beneficiaries will speak for themselves. They want to get cheap wheat, to increase their margins," the official said. Under the open market sales scheme, FCI sells wheat to flour millers and processors to check prices. The corporation does not allow traders to participate in auctions.
FCI's reserve price of wheat is cheaper than market prices, the official said. The all-India average wholesale price of wheat is INR 2,945.2 per 100 kg, with Delhi rates around INR 3,100 per 100 kg. For the current year 2024-25 (Apr-Mar), the government has set the reserve price of fair and average quality wheat for the auction at INR 2,325 per 100 kg and those for wheat below average quality at INR 2,300 per 100 kg.
The government has allowed FCI to sell only 2.5 million tonnes of wheat till March-end. However, the market wants FCI to sell 4.5-5.0 million tonnes. Last year, FCI sold a record 9.4 million tonnes of wheat under the open market scheme.
FCI has started selling wheat in the market after a four-month delay amid low procurement and falling stocks. The corporation typically begins wheat auctions in July or August, but in 2024-25, FCI began weekly auctions only in December. The first wheat auction in 2024-25 was held on Dec. 4, in which FCI sold 98% of the 100,000 tonnes offered.
Wheat stocks with the FCI as of Nov. 1 were 22.3 million tonnes, 2% higher than a year ago. The government relies on FCI stocks to feed over 813 million people under various welfare schemes, including Pradhan Mantri Garib Kalyan Anna Yojana through the public distribution system.
Wheat allocation for most states remains the same as last Wednesday, with FCI offering most wheat to Uttar Pradesh and Punjab--14,000 tonnes and 12,500 tonnes, respectively, FCI data showed.
The following is the state-wise allocation of wheat to be sold under the Open Market Sales Scheme on Wednesday as per FCI data:
State | Wheat allocated |
Uttar Pradesh | 14,000 |
Punjab | 12,500 |
West Bengal | 7,000 |
Assam | 6,500 |
Delhi | 5,500 |
Rajasthan | 5,000 |
Maharashtra | 5,000 |
Karnataka | 5,000 |
Madhya Pradesh | 4,000 |
Total* | 100,000 |
*The total will not add up as states with smaller quantities have been excluded from the table.
End
Edited by Saji George Titus
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