Food Corporation of India boosts market supply through e-auctions of wheat, rice

In a proactive measure to enhance the availability of essential commodities in the open market and mitigate inflationary trends, the Food Corporation of India (FCI) has successfully conducted 25 e-auctions, resulting in the sale of 48.12 Lakh Metric Tons (LMT) of wheat under the Open Market Sale Scheme (Domestic).According to a press release by the Ministry of Consumer Affairs, Food and Public Distribution, the strategic move aligns with the government's directives to ensure a steady supply of wheat and rice, not only for the Public Distribution System (PDS) but also for effective market intervention.

As of December 14, 2023, the central pool stock of food grains stands at 181.79 LMT of wheat and 182.86 LMT of rice, totalling 364.65 LMT.

In the ongoing Kharif Marketing Season (KMS) 2023-24, a substantial quantity of 354.22 LMT of paddy, equivalent to 237.43 LMT of rice, has been procured to date, ensuring a robust foundation for the Public Distribution System.

To address the rising concerns of inflation and enhance the market's wheat and rice supply, the FCI has initiated a series of e-auctions.

For wheat, the government allocated 101.5 LMT under the Open Market Sale Scheme (Domestic), with a reserve price set at Rs 2150 per quintal for FAQ wheat and Rs 2125 per quintal for URS wheat, the release stated.

Till December 14, a total of 25 e-auctions have been conducted, resulting in the successful sale of 48.12 LMT of wheat in the open market.

Additionally, the government is facilitating the distribution of wheat to Semi-government/Cooperative agencies like NAFED/NCCF/Kendriya Bhandar/MSCMFL at Rs 21.50 per kilogram.

These agencies will convert the wheat into atta and sell it to the general public at an MRP not exceeding Rs 27.50 per kilogram.

As of the same date, 86,084 MT of wheat has been lifted by these agencies, read the press release.

In parallel, the FCI is actively addressing the rice market dynamics.

For rice, the government allocated 25 LMT under the Open Market Sale Scheme (Domestic) with a reserve price set at Rs 3100 per quintal.

Through e-auctions, rice is offered at Rs 2900 per quintal, with a Rs 200 per quintal differential cost covered by the Price Stabilization Fund.

Notably, 1.19 LMT of rice has been successfully sold in the open market to private traders and bulk buyers as of December 14, 2023.

FCI Regional Offices have played a proactive role in promoting this initiative through extensive advertising, read the release. To encourage wider participation, bidders are now allowed to bid for any quantity of rice ranging from 1 to 2000 MT.

The FCI emphasizes that the rice offered under the central pool is of excellent quality, inviting active participation from traders to ensure easy and affordable availability for consumers in the market.

This comprehensive strategy by the Food Corporation of India aims to bolster market supply, stabilize prices, and ensure that essential commodities reach consumers efficiently, contributing to the nation's economic stability.