According to Ashok KK Meena, Chairman and Managing Director of Food Corporation of India, the central government has asked the agency to undertake e-auctions of wheat and rice to combat “inflationary trends” and manage the price of such staple food grains. In this e-auction, the maximum amount that a buyer can bid on is 100 tones. The minimum quantity has been set at 10 tones to suit small wheat processors and traders.
“The bidding is also restricted to local buyers by ensuring that the State’s GST registration is mapped and checked before stocks are released.” “These measures are taken to ensure a wider local reach for the stocks offered in a specific State,” according to a food ministry release. The first e-auction is offering approximately 4 lakh tonnes of wheat from 457 depots across the country.
Wheat’s basic price has remained unchanged at Rs. 2150 per 100 kg. Rice is priced at Rs 3100 per quintal. The Open Market Sale Scheme (Domestic) e-auction for rice would begin on July 5, 2023. “Until March 15, 2023, FCI held six weekly e-auctions of wheat.” “A total of 33.7 LMT wheat was offloaded, and wheat prices fell by 19% as a result of this massive intervention in 45 days,” according to the announcement.
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