: FCI sells 5.08 lakh tonne wheat to bulk consumers #FinanceIndia #StockMarketNEWS #Business Press Trust of India New Delhi State-run Food Corporation of India (FCI) sold 5. 08 lakh tonnes of

@StockMarketNEWS Mon 27 Feb, 2023

Posted in: #FinanceIndia #StockMarketNEWS #Business

FCI sells 5.08 lakh tonne wheat to bulk consumers #FinanceIndia #StockMarketNEWS #Business
Press Trust of India

New Delhi

State-run Food Corporation of India (FCI) sold 5. 08 lakh tonnes of wheat to bulk consumers like flour millers in the third round of e-auction held on Wednesday.

In the first two rounds, nearly 13 lakh tonnes of wheat have been 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. The next weekly e-auction will be held on March 1.

“About 5. 08 lakh tonne of wheat has been sold to bulk consumers under the OMSS today,” FCI Chairman and Managing Director Ashok K. Meena said.

The government on January 25 announced that it will offload 30 lakh tonnes of wheat in the open market.

Wheat is being offloaded under the OMSS to cool down the retail prices of wheat and wheat flour (atta). To further soften the retail wheat prices, the government recently reduced the reserve price of FCI wheat offered to bulk users and also announced the sale of an additional 20 lakh tonnes of wheat in the open market.

After the announcement of the OMSS policy, the food ministry has said that prices of wheat and atta have come down but still inflation figure for January 2023 was at a three-month high of 6. 52%.

As per the government data, the average price of wheat across major cities stood at Rs 33. 09 per kg on Wednesday, while the average price of atta (wheat flour) stood at Rs 38. 75 per kg.

Last week, the ministry reduced the reserve price of fair and average (FAQ) quality wheat to Rs 2,150 per quintal, while for Under Relaxed Specifications (URS) wheat to Rs 2,125 per quintal.

These new reserve prices were applicable from the third sale of wheat through e-auction.

Moreover, the rate of wheat has been reduced to Rs 21. 50 per kg for sale to NCCF/NAFED/ Kendriya Bhandar/state government cooperatives/federations as well as community kitchens/charitable/NGO etc. For converting wheat into atta and then selling to consumers at Rs 27. 50 per kg.

Out of total 50 lakh tonnes, FCI is selling 45 lakh tonnes of wheat to bulk consumers like flour millers through e-auction and 2 lakh tonnes to states/Union Territories. Three lakh tonnes of wheat are being provided to institutions and state-PSUs at a concession for converting wheat into wheat flour.

To control prices, the Centre banned wheat exports in May last year. India’s wheat production fell to 107. 74 million tonnes in the 2021-22 crop year (July-June) from 109. 59 million tonnes in the previous year due to heat waves in a few growing states.

The procurement fell sharply to 19 million tonnes this year from around 43 million tonnes last year.

Wheat production is estimated to rise at 112.