Food Corporation of India (FCI) has sold 5.39 lakh tonnes of wheat under the Open Market Sale Scheme (OMSS) to bulk consumers, including flour millers, in the fifth round of e-auction. According to the food ministry, in the previous four rounds, about 23.47 lakh tonnes of wheat were sold under the OMSS to bulk users as part of steps to cool down retail prices of the foodgrain and wheat flour. 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. 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.
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.
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.
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