FCI Sells 5.39 LMT of Wheat to 1248 Bidders in Its 5th e-Auction

A total of 11.88 LMT of wheat was offered, with 5.39 LMT sold to 1,248 bidders from 23 states, according to a statement from the Ministry of Consumer Affairs, Food, and Public Distribution.

According to the food ministry, approximately 23.47 lakh tonnes of wheat were sold under the Open Market Sale Scheme (OMSS) to bulk users in the previous four rounds as part of steps to reduce retail prices of food grain and wheat flour.

On March 15, the next weekly e-auction will take place. On March 9, the fifth round of e-auction was held, with approximately 11.88 lakh tonnes of wheat offered for sale from 657 FCI depots spread across 23 regions. The weighted average selling price was 2,197.91 per quintal, compared to the average reserve price of 2,140.29 per quintal.

"In the fifth auction, quantities ranging from 100 to 499 MT had the highest demand, followed by quantities of 500-999 MT, followed by quantities of 50-100 MT," the ministry said.

It went on to say that the overall price during the auctions indicates that the market has cooled, with prices averaging less than $2,200 per quintal. Buyers have lifted 19.51 lakh tonnes of the approximately 23.47 lakh tonnes of wheat sold in the four auction rounds.

Following the first auction, the total sale of wheat under OMSS reached 28.86 lakh tonnes, compared to the total allocation of 45 lakh tonnes.

"The sale has had a significant effect in cooling down the price of wheat and wheat flour throughout the country, which is likely to remain stable with future tenders for open sale of wheat under OMSS," said the ministry.

Because the wheat procurement period begins on April 1, the government has allowed for the lifting of the wheat to be completed by March 31. The OMSS has allocated a total of 50 lakh tonnes of wheat for sale. FCI has been tasked with selling a total of 45 lakh tonnes of wheat to bulk users through weekly e-auctions until March 15.