FCI sells 540,000 tonnes of wheat under OMSS in 4th round of auction

State-run Food Corporation of India (FCI) sold 5.40 lakh tonnes of wheat to bulk consumers like flour millers in the fourth round of e-auction held on Wednesday.

In the previous three rounds, about 18.05 lakh tonnes of wheat was sold under the Open Market Sale Scheme (OMSS) to bulk users as part of steps to cool down retail prices of the foodgrain and wheat flour. The next weekly e-auction will be held on March 8.

"Total quantity of 11.57 lakh tonne wheat was offered and 5.40 lakh tonne wheat has been sold to 1,049 bidders in 23 states," an official statement said.

Wheat was sold at an all-India weighted average reserve price of Rs 2,137.04 per quintal during the 4th auction.

Maximum demand was for wheat quantities in the range of 100 to 499 tonnes, it added

"The overall price quoted during the auctions suggests that the market has cooled down and is below Rs 2,200 per quintal on average," the statement noted

Till February-end, about 14.35 lakh tonne wheat was lifted by bidders. It means the OMS sale has brought significant effect in cooling down the price of wheat and atta all over the country which is likely to remain stabilized with the future tenders for open sale, it added.

Out of 50 lakh tonnes of wheat, FCI has the mandate to sell a total of 45 lakh tonnes of wheat under the Open Market Sale Scheme (OMSS) to bulk users till March 15, through a weekly e-auction. About 3 lakh tonne of wheat is earmarked for states governments and 2 lakh tonne for institutions like Nafed for converting it into wheat flour and then selling at Rs 27.50 per kg.