FCI Utilizes E-Auction to Release Wheat and Rice, Aiming to Boost Availability in Open Market and Address Inflationary Price Trends

The Food Corporation of India is holding adequate food grains (wheat and rice) to cater to the Public Distribution System (PDS) demands as well as for the market intervention. As on 14.12.2023 availability of food grains in the central pool is as under.

* In the current KMS 2023-24, 354.22 LMT paddy equivalent to 237.43 LMT rice has been procured till date.

In order to increase the availability of wheat and rice in the open market to ameliorate inflationary trends in wheat and rice prices, Food Corporation of India, as per the directions of Govt. of India is offloading wheat and rice in the market through weekly e-auctions. Current phase of offloading of wheat in the open market started from 28.06.2023.

Wheat

Government of India has allocated 101.5 LMT wheat for offloading under OMSS (D). Reserve price for the FAQ wheat and URS wheat has been kept as Rs. 2150/ Qtl and Rs. 2125/Qtl respectively. Till 14.12.23, total 25 e-auctions have been conducted wherein 48.12 LMT wheat has been sold in the open market.

In addition to the above, Govt. of India is also providing wheat to the Semi-government/Cooperative agencies like NAFED/NCCF/Kendriya Bhandar/MSCMFL at Rs. 21.50/Kg for converting into atta and selling to general public at an MRP  not exceeding Rs. 27.50/Kg. Till 14.12.23, 86084 MT wheat has been lifted by these agencies.

Rice:

Good procurement and stock of rice with FCI will be utilized to cater to the PDS requirement as well as for market intervention.

For rice, GOI allocated 25 LMT under OMSS (D) with a reserve price of Rs. 3100/Qtl. Through e-auctions, rice is offered at Rs. 2900/Qtl, with a Rs. 200/Qtl differential cost covered by the Price Stabilization Fund.

Remarkably, 1.19 LMT of rice has been sold in the open market to private traders and bulk buyers as of 14.12.23, a substantial increase compared to previous years. FCI Regional Offices actively promoted this initiative through extensive advertising.

Regular advertisement is being done to ensure that benefits of the OMSS (D) policy can be availed by the general public. All traders and any business person involved in Rice trading and processing can participate for such e-auctions after registering with FCI/m- junction portal.

However, to encourage greater participation, bidders are now allowed to bid for any quantity of rice from 1 to 2000 MT. The rice offered under the Central pool is of excellent quality, and traders are invited to actively engage in e-auctions to ensure easy and affordable availability for consumers in the market.