Home / News / India /  Food Corporation sells 9.2 lakh tn of wheat in first two days of e-auction

New Delhi: The Food Corporation of India sold 9.2 lakh tonne wheat in the first two days of the e-auction across the country which saw more than 1,150 bidders, said the Ministry of Consumer Affairs, Food and Public Distribution on Friday

“In order to address the rising price of wheat and atta in the country, the Food Corporation of India (FCI) offered 22.00 LMT out of 25 LMT wheat stock earmarked for e-auction wheat from the central pool stock to the market through various routes under the Open Market Sake Scheme (Domestic) in the e-auction on 1-2 February, 2023," it added.

The sale of wheat through the e-auction will continue every Wednesday till second week of March.

“In the first week of e auction quantities ranging from of 100 to 499 MT had maximum demand followed by quantities of 500-1000 MT followed by 50-100 MT indicating that small and medium flour millers and traders actively participated in the auction. Only 27 bids were received for the maximum quantity of 3000 MT at one go," the ministry said.

The weighted average rate of Rs. 2474 per quintal was realised by FCI in the auction. They also generated Rs. 2290 crore in the first week of the e-auction.

“Government of India has reserved 3 LMT wheat to Govt. PSUs/cooperatives/Federations like Kendriya Bhandar, NCCF and NAFED for sale without e-auction at the concessional rate of 2350/Qtls for converting wheat to Atta and offer it to public at a maximum retail price of Rs. 29.50 per Kg," the ministry added.

NCCF is allowed to lift 50,000 tn of wheat stock under the above scheme across 7 states. Allotment of 1 lakh tn wheat is made to NAFED and 1 lakh tn wheat made to Kendriya Bhandar under this scheme to bring down the price of atta across the country.

“Kendriya Bhandar has launched the scheme for selling atta under the said scheme. NAFED is set to start the scheme across 8 states," the ministry said.

The auction has already left an impact of fall in market prices of wheat by more than 10% in the past one week. The prices are set to fall further after the wheat sold is lifted and atta is made available in the market.

Swati Luthra
Swati Luthra writes on climate change, water, environment and forest issues for Mint. A graduate in Psychology, Swati has been mapping India’s policy initiatives to help meet the pledges made at CoP-26 including achieving net-zero carbon emissions by 2070.
Catch all the Business News, Market News, Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.
More Less
Recommended For You
Get alerts on WhatsApp
Set Preferences My ReadsWatchlistFeedbackRedeem a Gift CardLogout