Only 170 tonnes of 3.86 lt rice sold in FCI auction, wheat offtake improves

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Only Food Corporation of India (FCI) was sold 170 tons or 0.04 percent of the 3.86 thousand tons of rice offered in the first auction Under the Open Market Selling System (OMSS). On the other hand, 32 percent of the cutoff was reported in the case of wheat in the second round, up from 21 percent in the first round.

The average sale price of wheat at auction was Rs 2137.33 per quintal, against a reserve price of Rs 2125/quintal for the URS group and Rs 2150/quintal for the FAQ group. The sources said that 1,337 of the bidders succeeded in submitting bids. The all-India average selling price was Rs 2,136/quintal in the first round.

Rice was sold at an average of Rs 3,175.35/quintal, which was higher than its reserve price of Rs 3,100/quintal.

Shri Gouri Shankar Trading in Karnataka bought 40 tons of rice at Rs 3,183/quintal while four other buyers got it at Rs 3,173/quintal. Shree Padmavati Rice Pulse and Oil Mills in Gujarat and Akshay Agro Sales Corporation in Maharashtra bought 50 tons each.

Sources said Sadguru Trading Company, also from Maharashtra, bought 20 tons and Meghalaya Bothra Trading Company 10 tons.

“The rice supplied by FCI under OMSS is available at around 2,600 rupees/quintal, which is much lower than the reserve price. One rice miller in Punjab said that PDS recycled rice is sold at lower rates compared to the ‘normal’ varieties.” When asked why No takers in Punjab for FCI rice, with 1.5 liter cap being offered in the state, he said there was no demand in Punjab because it could not be sold elsewhere.

on wheat concession, a miller in Madhya Pradesh said that most buyers resell their grain to big buyers at prices slightly below market prices because FCI’s offer is the cheapest. Most buyers vie about the reserve price, because they know there is no competition due to the government’s 100-ton cap.

If the government wants to reduce prices, the maximum quantity should be raised to 500 tons from one warehouse, and one entity should be allowed to purchase from at least five to six places. It will create competition, as well as higher leverage, which will lead to increased availability,” said MP Cylindrical Flour Mill.