The Food Corporation of India (FCI) sold 3.85 LMT wheat through its second e-auction, generating Rs. 901 crore. The sale of wheat through e-auction will continue every Wednesday till the second week of March 2023 to address the rising prices of wheat and atta. Additionally, the government allocated 3 LMT wheat to various PSUs/cooperatives/federations for sale without e-auction and the concessional rates for wheat and atta under this scheme have been revised.
Overview
The highest demand during the e-auction was for quantities ranging from 100 to 499 MT, indicating that small and medium flour millers and traders actively participated. The allocation of wheat to government PSUs/cooperatives/federations at concessional rates is aimed at benefiting the general public by bringing down the prices of wheat and atta. This may also indirectly benefit farmers by creating demand for their wheat crop and ensuring a stable market price for their produce. This can provide a stable source of income for farmers and promote agricultural growth in the country.
Important points
- The Food Corporation of India (FCI) conducted its second e-auction of wheat stock on 15th February 2023, offering 15.25 LMT.
- More than 1060 bidders participated, and 3.85 LMT wheat was sold, generating Rs. 901 crore for FCI.
- The auction resulted in the realization of a weighted average rate of Rs. 2338.01 per quintal by FCI.
- Until the second week of March 2023, every Wednesday, the sale of wheat through e-auction will persist across the country.
- The National Cooperative Consumers’ Federation of India Limited (NCCF) has been allowed to lift 68,000 MT of wheat stock under this scheme across 08 states.
- Selling over 25 LMT of wheat stock, out of the total 30 LMT earmarked for sale under Open Market Sale Scheme (Domestic) OMSSD (D) through OMSS (D) scheme, within two months is expected to have a positive impact on controlling the rising prices of wheat and Atta, thereby providing relief to the general public.
Conclusion
In general, the initiatives taken by the FCI and the government to enhance the availability and affordability of wheat and flour appear to have the potential to benefit India’s food economy. These actions could mitigate the financial strain on the public, particularly with the surge in food prices, by regulating prices and increasing accessibility to a broader segment of consumers.
