FCI sells 97% wheat in e-auction, average selling price up

The off take of wheat in the sixth round of e-auction on Wednesday, as part of the Centre’s Open Market Sale Scheme (OMSS) to tame rising foodgrain prices, witnessed sales of 97 per cent of the 1.09 lakh tonnes (lt) on offer. However, there was an increase of ₹26/quintal in the selling price from the previous week’s auction.

The highest price in the auction was recorded ₹2,500/quintal in West Bengal and Maharashtra. In Madhya Pradesh, it fetched ₹2,430, In Gujarat ₹2,410, in Jharkhand ₹2,405, in Odisha ₹2,400 and in Uttarkhand ₹2,350, trade sources said pointing to the demand-driven price realisation in the auction in these States whereas in Karnataka the highest price was ₹2,275/quintal and in Kerala it was ₹2,320/quintal.

The weighted average selling price in current round increased to ₹2,208.33/quintal for FAQ from₹2,182.68 in the previous round. The reserve price for FAQ wheat is ₹2,150/quintal. The weighted average selling price of URS wheat in current round was ₹2,219.29, up from ₹2,173.85 in previous round, whereas the reserve price is ₹2,125.

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Rice price

The weighted average selling price of rice was same as its reserve price of ₹3,124.33 in Wednesday’s round of e-auction, down from ₹3,151.10 per quintal in the last round.

In the previous round, there was 94 per cent off take in wheat, after the government rationalised the offered quantity as per actual demand, officials said.

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Though sold out quantity of rice increased in the current auction to 150 tonnes from 100 tonnes in the previous round, it may continue to be in the same range as the Government is unlikely to make any change in guidelines, particularly after domestic prices started falling following export ban on white rice.

The government has already raised the upper limit from 100 tonnes per entity in a State to bid for 1,000 tonnes per region for each buyer for rice. Traders have been demanding reduction in the reserve price from current ₹3,100/quintal. The Food Corporation of India (FCI) had offered 1.43 lt of rice from 168 depots across the country.

In order to control the retail price of rice, wheat and atta, weekly e-auctions are being organised and the government is committed towards price stabilisation to provide relief to the consumers, officials said.