FCI To Start Online Wheat Auction on February 1

State-owned Food Corporation of India (FCI) said that it will begin a weekly e-auctioning on February 1 at a reserve price of Rs 2,350 per quintal including freight costs. FCI wants to sell 25 lakh tonnes of wheat to bulk buyers.

In an effort to rein on soaring wheat and wheat flour prices, the government announced plans on Wednesday to sell 30 lakh tonnes of buffer wheat in the open market under the Open Sale Market Scheme (OMSS).

Out of 30 lakh tonnes, FCI seeks to sell 25 lakh tonnes to bulk consumers like flour millers through electronic auction, while 2 lakh tonne will be given to states/union territories and 3 lakh tonnes to institutions and state-owned PSUs at discounted rates for converting wheat into wheat flour and then selling at not more than Rs 29.50 per kg.

The e-auction will take place on February 1, according to FCI Chairman and Managing Director Ashok K Meena, who announced this during a press conference in the national capital.

The reserve price for wheat will be Rs 2,350 per quintal plus freight costs, he noted, a single buyer may submit a quote for a minimum of 10 tonnes and a maximum of 3,000 tonnes.

Regional offices have been instructed, according to the FCI chairman, to advertise the tenders for the wheat e-auction as well as to encourage local flour millers, dealers, and producers of wheat-based products to sign up on the FCI platform in order to take part in the e-auction.

As of January 26, the buffer stock of FCI, the government's key agency for the purchase and distribution of foodgrains, contained about 156.96 lakh tonnes of wheat.

According to the OMSS policy, the government occasionally permits FCI to sell food grains, particularly wheat and rice, to large consumers and private dealers on the open market at fixed rates.

The step has been taken in order to increase supply during the lean season and lower overall open market prices.

Following a minor reduction in domestic production and a big decline in the FCI's procurement for the central pool, the Centre banned wheat exports in May of last year in an effort to regulate prices.