Wheat Sold in 2.87 Lac Tonnes at FCI’s 19th E-Auction
The Food Corporation of India (FCI) recently concluded its 19th round of e-auction, successfully selling an impressive 2.87 lac tons of wheat. This achievement underscores the efficiency and transparency of FCI’s e-auction platform and highlights the significance of such initiatives in the country’s food distribution system.
The Food Corporation of India (FCI) is a government organization responsible for maintaining the buffer stock of essential food grains and ensuring their distribution across the country. Established in 1965, FCI plays a pivotal role in India’s food security system by procuring, storing, and distributing food grains such as wheat and rice to various states and union territories.
The buffer stock of 2.87 lakh tonnes of wheat was sold by the state-owned Food Corporation of India (FCI) to large buyers in the 19th e-auction round.Since June 28, FCI has used a weekly e-auction to sell wheat and rice from the Central pool to small merchants and flour millers who are bulk purchasers under the Open Market Sale Scheme (OMSS) with the goal of controlling retail prices of these essential commodities.
Compared to the reserve price of Rs 2,125 per quintal, the weighted average selling price of under relaxed standard wheat was Rs 2,311.62 per quintal.Up to March 31, 2024, wheat will be sold under the OMSS, and during that time, about 101.5 lakh tonnes of wheat will be offloaded.
The OMSS excludes traders from the wheat sale’s scope, and up to October 3, 1,721 random inspections were conducted nationwide to prevent stock hoarding.
FCI’s e-auction platform is a digital marketplace that facilitates the sale of food grains to registered buyers, which include traders, millers, and bulk consumers. The e-auction platform was introduced to enhance transparency, efficiency, and competitiveness in the process of selling food grains surplus to the buffer stock.
The 19th round of e-auction by FCI witnessed the sale of a substantial 2.87 lac tons of wheat. This achievement is a testament to the effectiveness of the digital platform in connecting sellers and buyers seamlessly, ensuring that surplus food grains reach the market efficiently. The e-auction process allows buyers from various parts of the country to participate in the bidding, promoting fair competition and better price discovery.
- Market Efficiency: The e-auction system promotes market efficiency by enabling a broader spectrum of buyers to participate. This results in competitive bidding and fair market prices, benefiting both sellers and buyers.
- Food Security: The sale of surplus wheat from FCI’s buffer stock contributes to maintaining food security in India. It ensures that essential food grains are readily available in the market to meet the demands of the population, especially during times of scarcity or emergencies.
- Revenue Generation: The revenue generated through the e-auction can be reinvested by FCI in its procurement and distribution operations, thereby ensuring the sustainability of the food security system.
- Transparency: The e-auction process is transparent, reducing the scope for corruption and malpractices that might occur in traditional offline auctions.
- Digitalization: FCI’s adoption of digital platforms aligns with the Indian government’s broader Digital India initiative, promoting technological advancements and enhancing the ease of doing business.
FCI plays a crucial role in ensuring food security in India through various activities:
- Procurement: FCI procures food grains directly from farmers at Minimum Support Prices (MSPs), providing them with a fair income and incentivizing agricultural production.
- Buffer Stock: It maintains a substantial buffer stock of food grains, which can be used during emergencies like droughts, floods, or other natural disasters.
- Distribution: FCI efficiently distributes food grains to state governments and union territories through the Public Distribution System (PDS), ensuring that food reaches the vulnerable sections of society at affordable prices.
- Export and Sale: Surplus food grains are exported or sold in the open market through e-auctions, generating revenue for FCI and contributing to overall food security.
The successful completion of the 19th round of e-auction by FCI, resulting in the sale of 2.87 lac tons of wheat, highlights the organization’s commitment to transparency, efficiency, and food security in India.
The e-auction platform has become a critical tool in connecting surplus food grains with buyers across the country, ensuring that essential commodities are readily available in the market while generating revenue for FCI’s operations.
As FCI continues to modernize its processes and embrace digitalization, it reinforces its role as a key player in India’s food security landscape.
