In a bid to control the retail prices of essential commodities like rice, wheat, and atta, the Government of India has initiated a market intervention program. As part of this initiative, weekly e-auctions are being conducted to offer rice and wheat for purchase by retailers, processors, and traders.
The third e-auction for the year 2023-24 is scheduled to take place on July 12, 2023. This auction will feature 4.29 LMT (Lakh Metric Tons) of wheat from 482 depots and 3.95 LMT of rice from 254 depots across the country. Interested parties can find the tender notices for these e-auctions on the website of M Junction Services Ltd., available at https://www.valuejunction.in/fci/. Participants are encouraged to empanel themselves on the site for future e-auction participation.
The Food Corporation of India (FCI) aims to increase the involvement of small and marginal end users in the weekly e-auctions, ensuring that the released stocks reach a wider section of society. In the recent e-auction conducted by the FCI on July 5, 2023, a total quantity of 4.07 LMT of wheat was offered from 526 depots, and 3.88 LMT of rice was offered from 251 depots across 23 regions of FCI. Out of these, 1.29 LMT of wheat was sold to 1,337 bidders, while 170 MT of rice was sold to 5 bidders.
The weighted average selling price for FAQ (Fair Average Quality) wheat was Rs. 2154.49 per quintal, surpassing the reserve price of Rs. 2150 per quintal Pan India. Additionally, the weighted average selling price for URS (Under Rice Scheme) wheat stood at Rs. 2132.40 per quintal against a reserve price of Rs. 2125 per quintal. For rice, the weighted average selling price amounted to Rs. 3175.35 per quintal, slightly higher than the reserve price of Rs. 3173 per quintal Pan India.
To participate in the e-auction for wheat, bidders must declare their stock in the wheat stock management portal of the Government of India. This step has been made mandatory to ensure transparency and fair participation in the auction.
In the ongoing e-auctions, the government aims to reduce retail prices by allowing a maximum purchase limit of 100 tons per buyer. This decision is specifically targeted to encourage small and marginal end users to participate actively and bid for quantities from their preferred depots.
