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HomePosts Tagged "e-auctions of wheat and rice"
AgroPolicy, Foodgrains, India, Trade

Bidders allowed to bid for any quantity of rice from 1 to 2000 MT during e-auctions.

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.

Bidders allowed to bid for any quantity

AgroPolicy, E-commerce, Foodgrains, India, Trade, Warehousing

FSSAI License made mandatory for participation to identify genuine processors and traders.

Chairman and Managing Director, Food Corporation of India, Ashok K. K. Meena said that the Government has now directed the FCI to conduct the e-auctions of wheat and rice to check the inflationary trends in prevailing retail prices as a part of market intervention to control the price of wheat and rice. Meena said this while addressing the media in New Delhi.

The base price of wheat has been kept at the same level at Rs 2150/qtl for FAQ and Rs 2125/qtl for URS wheat. In order to control the hoarding of wheat, the Government has decided that the declaration in the Wheat Stock Monitoring System portal is mandatory for participation in the auctions. In addition to this, in order to identify the genuine processors and traders, the valid FSSAI License has also been made mandatory for participation.

The maximum quantity that a buyer can bid for is limited to 100 MTs in this e-auction. To accommodate the small wheat processors and traders, the minimum quantity has been kept to 10 MTs. Further, to accommodate the small and marginal traders and processors of wheat, the EMD for participation in the e-auctions has also been reduced by 50 per cent from the earlier levels.

The bidding is also limited to the local buyers by ensuring that the GST registration of the State is mapped and checked before stocks are released. These measures are taken to ensure a wider local reach for the stocks offered in a particular State.

4 LMT of wheat is being offered in the 1st e-auction from 457 depots across the country. 271 fresh empanelment of buyers were done after 01.04.2023. There are 2093 active empanelled bidders as on date. The e-auction for rice under Open Market Sale Scheme (Domestic) would commence from 5th July 2023. The base price of Rice is Rs 3100/qtl.

6 weekly e-auctions of wheat were conducted by FCI till 15.03.2023. Total quantity of 33.7 LMT wheat was offloaded, and the prices of Wheat came down by 19% due to this massive intervention in a span of 45 days. Due to the Rabi Procurement period of Wheat, the market intervention was suspended. 

FSSAI License made mandatory for participation to