In a move aimed at stabilizing market prices and ensuring essential food items remain accessible to the general public, the Government of India successfully conducted an e-auction through the Open Market Sale Scheme (D). The auction, held on September 6, 2023, saw the sale of 1.66 lakh metric tons (LMT) of wheat and 0.17 LMT of rice.
The Ministry of Consumer Affairs, Food & Public Distribution organized this e-auction, part of their ongoing efforts to combat inflation and make rice, wheat, and atta available to the public at reasonable prices. A substantial quantity of 2.0 LMT of wheat from 500 depots and 4.89 LMT of rice from 337 depots were made available for sale.
During the e-auction, 1.66 LMT of wheat and 0.17 LMT of rice were successfully sold. Notably, the weighted average selling price for FAQ wheat exceeded the reserve price at Rs. 2169.65 per quintal, while URS wheat also fetched a higher price at Rs. 2150.86 per quintal, against respective reserve prices of Rs. 2150 and Rs. 2125 per quintal.
For rice, the weighted average selling price was slightly above the reserve price at Rs. 2956.19 per quintal, compared to the Pan India reserve price of Rs. 2952.27 per quintal.
This tranche of e-auctions introduced an innovative approach to encourage small and marginal end-users. The government imposed a maximum limit of 100 tons for wheat and 1000 tons for rice per buyer. This strategic decision aims to level the playing field, allowing more participants to bid for quantities from their preferred depot.
To prevent hoarding and ensure fairness in the process, traders were excluded from wheat sales under the Open Market Sale Scheme (D). Additionally, rigorous checks and inspections have been conducted at the Flour Mills of processors who have purchased wheat under the scheme. As of September 5, a total of 898 checks had been carried out across the country.
These proactive measures by the government through e-auctions are intended to stabilize market prices and ensure that essential food items remain accessible to the general public, particularly benefiting small consumers and end-users. This initiative aligns with the government’s broader mission to control the retail prices of rice, wheat, and atta, providing much-needed relief to consumers.
