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Informist, Thursday, Feb. 27, 2025

 

By Afra Abubacker

 

NEW DELHI – The Food Corp. of India is offering a record 500,000 tonnes of wheat on Thursday, to cool down prices under the open market sales scheme, an FCI official said. He added that this was the highest quantum on offer since the agency started auctioning wheat in December.

 

"Wheat auction is happening today (Thursday) as yesterday (Wednesday) was a holiday. The auction is ongoing," the official said. FCI holds e-auctions of wheat every Wednesday. Last Wednesday, FCI offered 400,000 tonnes and sold 99.9% of it as flour makers and processors piled on government wheat amid shortages in the open market.

 

Millers have been demanding FCI to offer at least 500,000-600,000 tonnes a week to keep the market well supplied. However, since December, FCI has mostly offered either 100,000 tonnes or 150,000 tonnes a week. But from February, FCI started gradually offering more wheat to cool wheat market prices. 

 

"The government should offer more wheat to the market," Farm Expert G.K Sood told Informist earlier. Sood had said that FCI could increase weekly auction quantum to at least 500,000 tonnes as only about 4 weeks are left till March end.

 

Asked if FCI has increased the allocated quantity per miller, the official said the quantity remains unchanged at 400 tonnes. Last Wednesday, FCI allowed mills to quote for up to 400 tonnes per auction, from 150 tonnes earlier, to cool wheat prices. However, millers made aggressive bids to bag more wheat from government godowns. And the average selling price rose to INR 3,011 from INR 2,667 per 100 kg on Feb. 12, FCI data showed. 

 

On Wednesday, the all-India average wholesale price was INR 3,024.3 per 100 kg, up by INR 273 per 100 kg, or 9.9%, on year amid tight supply in the market. Retail prices of atta, or wheat flour, in Delhi have risen INR 7 per kg, or nearly 22.6%, on year to INR 38 per kg.

 

Though new crop arrivals have started trickling into the market, wheat prices remain firm amid tight supply in the open market, traders said. So far, new crop arrivals have started only in Rajasthan, Madhya Pradesh, and Gujarat. But arrivals are yet to start in major producing states like Punjab, Haryana, and Uttar Pradesh. 

 

As of Feb. 1, FCI had  16.2 million tonnes of wheat in its godowns, up 22% on year. The agency should be left with 9.5-10.0 million tonnes by the end of March, Sood said. The opening stock for this financial year was only 7.5 million tonnes.  End

 

Edited by Akul Nishant Akhoury

 

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