Centre to auction 4 lakh tonnes of wheat, 5 lakh tonnes of rice in open market in 1st round of auction to cool retail prices

The Centre on Friday announced that it will sell 4 lakh tonnes of wheat and 5 lakh tonnes of rice from its buffer stock to bulk consumers and traders to control rising retail prices of these two foodgrains. However, states are not allowed to participate in the auction.

The Food Corporation of India (FCI), the government's nodal agency for procurement and distribution of foodgrains, will conduct an e-auction of wheat on June 28 and that of rice on July 5 to boost domestic supplies and control prices under Open Market Sale Scheme (OMSS). The FCI issued a tender for wheat Friday night.

The maximum quantity that a buyer can bid for is limited to 100 tonnes in this e-auction. For small wheat processors and traders, the minimum quantity has been kept at 10 tonnes. State governments are not allowed to participate in bidding, FCI Chairman and Managing Director Ashok K Meena told reporters here.

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This auction is being held as part of the Centre's measures to control rising retail prices of these two foodgrains, he said, adding that the government would take all possible measures to bring down retail prices, including a reduction in the duty of wheat, he said.

The reserve price of wheat has been fixed at Rs 2,150 per quintal for Fair and Average Quality (FAQ) grain and Rs 2,125 per quintal for under relaxed specifications (URS). The reserve price of rice has been fixed at Rs 3,100 per quintal.

To control the hoarding of wheat, the government has decided that the declaration in the wheat stock monitoring system portal is mandatory for participation in the auctions. Asked about the total quantity of rice to be sold through OMSS, Meena said it has not been decided yet.

However, he said the government has surplus 87 lakh tonnes of wheat and 292 lakh tonnes of rice that can be used for the OMSS if the situation warrants. This surplus foodgrain quantity remains after meeting the requirements of the National Food Security Act (food law), other welfare schemes and buffer stock norms.