Food price set to fall as auctioned wheat reaches markets, says government

On the first day, the FCI offered for sale about 22 lakh tonnes of wheat against the earmarked 25 lakh tonne under OMSS (Representative Image: AP)

Food prices will continue to fall after wheat sold in e-auction is made available in the market, as per the Ministry of Consumer Affairs, Food and Consumer Distribution. It added that the second round of sale of wheat through e-auction is to be held on February 15.

The Food Corporation of India (FCI) has asked winning bidders of the first e-auction which was held on February 1 and 2, to remit the cost and lift the stock immediately from concerned depots. The FCI commenced e-auction of wheat on February 1 under Open Market Sale Scheme (OMSS) for bulk users in order to improve domestic availability and check wheat prices.

On the first day, it offered for sale about 22 lakh tonnes of wheat against the earmarked 25 lakh tonne under OMSS.

"More than 1,100 bidders came forward for participation in the first e-auction. A quantity of 8.88 lakh tonne was sold on the first day of e-auction in 22 states," the ministry said in a statement. Sale of wheat through e-auction will continue throughout the country on every Wednesday till March 15, it added.

Wheat is being offered at a reserve price of Rs 2,350 per quintal plus freight charges. A single buyer can quote for a maximum of 3,000 tonnes and a minimum of 10 tonnes.

Last month, the government announced plans to sell 30 lakh tonnes of wheat in the open market from its buffer stock under OMSS in order to check wheat and wheat flour prices.

Out of 30 lakh tonnes, FCI will sell 25 lakh tonnes to bulk consumers like flour millers through e-auction and 2 lakh tonnes to states and Union Territories.