FCI floats tender to auction 8.24 LT wheat and rice
Food Foundation of India (FCI) issued a government tender for the sale of 4.29 thousand tons of wheat and 3.95 liters of rice From its stock to wholesale consumers on July 12th. Although some improvements were observed in the withdrawal of wheat in the second round from the first round, only 0.04 percent of the rice could be sold on July 5.
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However, there is no change in the policy regarding rice and the government continues with the same standards although it has said that lowering retail prices is the main objective of the open selling system.
“The government is offloading wheat and rice from FCI stocks under the Open Market Sale Scheme (OMSS) to wholesale consumers to improve domestic supply and control retail prices of rice, wheat and atta,” the Food Ministry said on Friday.
In the third round of the online auction, the allotments for wheat and rice were increased. The ministry said that wheat will be auctioned from 482 warehouses and rice from 254 warehouses.
Stock declaration by bidders in the Government of India Wheat Stock Management Portal is mandatory for participation in the Online Auction of Wheat. In the current tranche of electronic auctions, the ministry said that the retail price reduction is targeted by offering up to a maximum of 100 tons to the buyer.
However, experts and traders have blamed this cap as a cause of bad buying thus defeating the purpose of increasing market availability.
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According to data from the Ministry of Consumer Affairs, the maximum retail price of rice in India has not changed at 65/kg since June 12, when the government first announced the sale of the grain on the open market. However, only $2/kg was increased at its lowest rate of $23/kg on June 12th. The typical retail price of rice increased to $38/kg on July 7 from $35/kg on June 12.
Prices of typical wheat in the retail market remained constant at ₹25/kg, and the lowest price rose to ₹21/kg from ₹20/kg during this period.