As part of the Indian government’s market intervention initiative to control the retail price of rice, wheat and atta, in the follow-up to weekly electronic auctions both wheat and rice are offered for purchase from retailers, processors and merchants. The third electronic auction of 2023-24 is scheduled for 12.07.2023. An amount of 4.29 LMT of wheat from 482 warehouses and 3.95 LMT of rice from 254 warehouses is being supplied from all over the country.
The tender notices for the same are uploaded on the website of M Junction Services Ltd. ie https://www.valuejunction.in/fci/. Interested parties can enter the site for participation in future electronic auctions. FCI is encouraging smaller and more marginal end users to participate in weekly electronic auctions so that released stock reaches a larger part of society.
In the electronic auction conducted by the Food Corporation of India on 05.07.2023, a total amount of 4.07 LMT of wheat from 526 warehouses and 3.88 LMT of rice from 251 warehouses was bid across 23 regions of the FCI. 1.29 tons of wheat was sold to 1337 bidders and 170 tons of rice to 5 bidders.
The weighted average selling price was Rs. 2154.49/qtl for Wheat FAQ against the reserve price of Rs. 2150/qtl Pan India while the weighted average selling price of URS wheat was Rs. 2132.40/qtl compared to the reserve price of Rs. 2125/qtl.
The weighted average selling price was Rs. 3175.35/qtl for rice against the reserve price of Rs. 3173/qtl Pan India.
The declaration of stocks by the bidders in the Government of India’s Grain Inventory Management Portal is made mandatory for participating in the Electronic Auction for Grain.
In the current tranche of electronic auctions, the reduction of the retail price is targeted by offering up to 100 tons maximum for one buyer. This decision is intended to encourage small and fringe end users and to ensure that more participants can come forward and bid for the amount from their preferred repository.
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