FCI sells 5.39 lakh tonnes wheat in 5th auction round under OMSS

Food Corporation of India sold 5.39 lakh tonnes of wheat to bulk consumers, including flour millers, in the fifth round of e-auction.

In the previous four rounds, about 23.47 lakh tonnes of wheat were sold under the Open Market Sale Scheme (OMSS) to bulk users as part of steps to cool down retail prices of the foodgrain and wheat flour, according to the food ministry.

The next weekly e-auction will be held on March 15.

The fifth round of e-auction was conducted on March 9 and about 11.88 lakh tonnes of wheat were offered for sale from 657 depots across 23 regions of FCI.

''About 5.39 lakh tonnes of wheat has been sold to 1,248 bidders,'' the ministry said in a statement.

Against the average reserve price of Rs 2,140.29 per quintal, the weighted average selling price was Rs 2,197.91 per quintal.

The maximum number of bids were for quantity ranging from 100 to 499 tonnes, followed by 500-999 tonnes and 50-100 tonnes, the statement said.

According to the ministry, the overall price during the auctions suggest that the market has cooled down and the prices are ruling below Rs 2,200 per quintal on an average.

Out of the about 23.47 lakh tonnes of wheat sold in the four auction rounds, 19.51 lakh tonnes have been lifted by the buyers.

After the first auction, the cumulative sale of wheat under OMSS touched 28.86 lakh tonnes against the overall allocation of 45 lakh tonnes.

''The sale has brought significant effect in cooling down the price of wheat and wheat flour all over the country which is likely to remain stabilised with the future tenders for open sale of wheat under OMSS,'' the ministry said.

In view of the start of wheat procurement period from April 1, the government has allowed the lifting of the wheat to be completed by March 31. A total of 50 lakh tonnes of wheat has been allocated for sale under the OMSS.

Out of the allocated quantity, FCI has the mandate to sell a total of 45 lakh tonnes of wheat to bulk users till March 15, through weekly e-auctions.

About 3 lakh tonnes of wheat are earmarked for states governments and 2 lakh tonnes for institutions like Nafed for converting it into wheat flour and then selling at Rs 27.50 per kilogram.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)