Indian wheat sales in the open market of buffer stocks exceed 7.5 million tons.

Of the 4.25 lakh tonnes of wheat sold at the Food Corporation of India (FCI) auction on Wednesday, the Indian government has sold 75.26 million tonnes since the start of wheat sales on June 28. Even 4.25 liters of the 4.5 liters offered at the weekly auction held on January 31 were sold, the sources of the Ministry of Food said. The government did not increase the bid amount during the ongoing auction, which sources said was mainly due to a last-minute revaluation based on the impact of the current weather on the wheat crop. However, it may be reviewed soon and if necessary, the amount will be increased, sources in the ministry said. 

Average Price 

 The average sale price of wheat was ₹ 2,255.35 a quintal at FCI’s weekly online auction on Wednesday, compared to ₹ 2,250.55 last week. On December 13, it was ₹ 2,172.94 percent.

The government has kept the minimum auction price of wheat at around ₹ 2,129 per quintal, which is well below the economic cost of the grain – currently ₹ 2,703. In that round, the average selling price in the eastern region was ₹ 2,306 per quintal, higher than the minimum support price of ₹ 2,275 (next season), while prices in other regions ranged from ₹ 2,158 to ₹ 2,260. Traders said that since the MSP is known, market rates tend to move towards the reference rates if the crop is harvested in less than two months.

Highest bid

In both Bihar and West Bengal, the highest bid price was ₹2550/hundred, Uttar Pradesh ₹2560, Maharashtra ₹2495, Madhya Pradesh ₹2060, Karnataka ₹570. “In order to increase the availability of wheat and rice in the open market and to control the prices of wheat and rice, the Government of India has unloaded wheat and rice from the market through a weekly electronic auction from 28 June 2023. A total of 101 ,5 liters of wheat has been reserved for unloading under the open market sale scheme and 25 liters of rice,” the ministry announced.

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