Centre directs FCI to conduct e-auctions of wheat, rice to check inflation

The e-auction for rice under Open Market Sale Scheme (Domestic) would commence on July 5, 2023. The maximum quantity that a buyer can bid for is limited to 100 tonnes in this e-auction.

Published: 26th June 2023 11:14 AM  |   Last Updated: 26th June 2023 11:14 AM   |  A+A-

FILE - Farmers use a combined harvester in a wheat field in Amritsar. (Photo | PTI)


NEW DELHI: Chairman and Managing Director of Food Corporation of India Ashok KK Meena said that the central government has directed the agency to conduct the e-auctions of wheat and rice to check the "inflationary trends" and to control the price of such staple foodgrains.

The maximum quantity that a buyer can bid for is limited to 100 tonnes in this e-auction. To accommodate the small wheat processors and traders, the minimum quantity has been kept to 10 tonnes.

"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," a food ministry release said.

About 4 lakh tonnes of wheat is being offered in the 1st e-auction from 457 depots across the country.

The base price of wheat has been kept at the same level at Rs. 2150 per 100 kg. The base price of Rice is Rs 3100 per quintal.

The e-auction for rice under Open Market Sale Scheme (Domestic) would commence on July 5, 2023.

"6 weekly e-auctions of wheat were conducted by FCI till 15.03.2023. The total quantity of 33.7 LMT wheat was offloaded and the prices of Wheat came down by 19 per cent due to this massive intervention in a span of 45 days," the release added.

In order to manage overall food security and to prevent hoarding and unscrupulous speculation, the government earlier this month decided to impose stock limits on wheat for traders, wholesalers, retailers, big chain retailers and processors. The order will be applicable with immediate effect and will be applicable until March 31, 2024.

To manage the overall food security of the country as well as meet the needs of the neighbouring and other vulnerable countries amid the double whammy, India in 2022 amended the export policy of wheat by putting its export under the "prohibited" category, which is still in force.

Multiple rounds of heat waves in several wheat-growing regions in India before the rabi harvest last year affected crops. Wheat pods in the mature stage typically shrink if overexposed to heat.

This year too, there were reports from various key growing states that unseasonal rains have flattened standing crops in some regions. Wheat, a rabi crop was in an advanced maturing stage and was expected to hit mandis in a fortnight or so. 

Follow The New Indian Express channel on WhatsApp


Disclaimer : We respect your thoughts and views! But we need to be judicious while moderating your comments. All the comments will be moderated by the newindianexpress.com editorial. Abstain from posting comments that are obscene, defamatory or inflammatory, and do not indulge in personal attacks. Try to avoid outside hyperlinks inside the comment. Help us delete comments that do not follow these guidelines.

The views expressed in comments published on newindianexpress.com are those of the comment writers alone. They do not represent the views or opinions of newindianexpress.com or its staff, nor do they represent the views or opinions of The New Indian Express Group, or any entity of, or affiliated with, The New Indian Express Group. newindianexpress.com reserves the right to take any or all comments down at any time.

flipboard facebook twitter whatsapp