Wheat price eases on wk as FCI offers record quantity at open mkt sale Thu
This story was originally published at 20:29 IST on 27 February 2025
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By Afra Abubacker
NEW DELHI – After offering a record quantity of wheat in the weekly auction Thursday, the Food Corp. of India's average selling price for the commodity eased amid lower bids from millers and processors. The average selling price fell to INR 2,796 per 100 kg, from INR 3,011 per 100 kg last week, according to data from the FCI. However, the average selling rate remains higher than the average price of INR 2,646 per 100 kg recorded Feb. 5.
On Thursday, the agency offered a record 500,000 tonnes and sold 99.6%, or 498,000 tonnes, amid wheat shortages in the open market, an FCI official said. Wheat prices eased at the auction as the agency offered more wheat to millers and processors.
On Thursday, some major states saw a decline in the highest bid as millers' quotes fell below INR 3,000 per 100 kg. The highest bids were INR 2,985 per 100 kg in Uttar Pradesh and INR 2,909 in Rajasthan, FCI data showed. Data for Punjab and Delhi were not available at the time of writing.
FCI kept the allocated quantity per miller unchanged from last week. On Feb. 19, FCI had allowed mills to bid for up to 400 tonnes per auction, from 150 tonnes earlier, to cool wheat prices. However, millers had made aggressive bids to bag more wheat from government godowns, and the average selling price rose to INR 3,011 per 100 kg last week.
On Wednesday, the all-India average wholesale price of wheat 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.
Millers have been demanding that FCI offer at least 500,000 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. From February, the agency began gradually offering more wheat to cool market prices.
"The government should offer more wheat to the market," agricultural commodities expert G.K. Sood had told Informist earlier. Sood had suggested that the FCI could increase the weekly auction quantity to at least 500,000 tonnes, with just about four weeks to go for the financial year 2024-25 (Apr-Mar) to end. End
Edited by Rajeev Pai
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