Government E-Auctions Successfully Control Prices, Surpassing Reserve Rates for Wheat and Rice

In a promising development as part of the Government of India's proactive efforts to stabilize retail prices of essential commodities such as rice and wheat, the Open Market Sale Scheme (Domestic) has been facilitating weekly e-auctions for these grains.

Recently, in the 11th e-auction of the 2023-24 season, a substantial quantity of 2 lakh metric tonnes (LMT) of wheat, sourced from 500 depots, and 4.89 LMT of rice from 337 depots, was made available from various regions across the country.

The Ministry of Consumer Affairs, Food & Public Distribution, Government of India, has reported that in this highly anticipated e-auction event, 1.66 LMT of wheat and 0.17 LMT of rice were found buyers.

Moreover, competitive pricing was achieved during these auctions. For fair and average quality (FAQ) wheat, the weighted average selling price stood at Rs. 2169.65 per quintal, crossing the reserve price of Rs. 2150 per quintal nationwide. Similarly, under reduced specification (URS) wheat, the weighted average selling price reached Rs. 2150.86 per quintal against a reserve price of Rs. 2125 per quintal.

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Additionally, when it came to rice, the ministry proudly announced that the weighted average selling price reached a commendable Rs. 2956.19 per quintal, outperforming the pan India reserve price of Rs. 2952.27 per quintal.

In a move aimed at benefiting the consumers and promoting fair market competition, the current tranche of e-auctions introduces a maximum purchase limit of 100 tonnes for wheat buyers and 1000 tonnes for rice buyers. This strategic decision not only encourages participation from small and marginal end-users but also opens up opportunities for a wider array of participants who can now bid for quantities from their preferred depots.

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Moreover, to prevent the stockpiling of grains, traders have been excluded from participating in wheat sales under the Open Market Sale Scheme (D). This move indicates the government's commitment to maintaining an equitable market and ensuring fair access to essential commodities. Rigorous checks and inspections have been carried out at flour mills of processors who have purchased wheat under OMSS (D), with a total of 898 checks conducted across the country until September 5, 2023.

These e-auctions continue to make strides. This also symbolizes the government's dedication to ensuring food security and market stability for the benefit of all.

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