FCI to hold a second round of auction for wheat on February 15

20,000 tonnes of the foodgrain will offered for auction; the move is aimed at making wheat available in the open market, and thereby, reduce its price under the Open Market Sale Scheme (Domestic)

The Food Corporation of India (FCI), Tamil Nadu region, will have yet another round of e-auction for wheat on February 15.

This effort to make wheat available in the open market, and thereby, reduce its price under the Open Market Sale Scheme (Domestic), will see 20,000 tonnes being offered for auction. In the first round of the auction, wheat around 46,000 tonnes of wheat were lifted by flour millers, wholesalers and other agencies registered with the FCI. The agency had tendered out 85,000 tonnes of wheat during this round. In the second round, the upper price of wheat will be ₹2,350/quintal.

A total of 10,000 tonnes of wheat is being sold to the State government under the same scheme against its requirement, an official said. However, prices of wheat and wheat products are yet to see any significant reduction.

K. Senthilkumar, a wholesaler in Parry’s Corner in Chennai, said wheat prices, like it’s consumption, had remained steady after Deepavali. But, maida prices had been going up due to demand. “I don’t see the pumping in of additional wheat helping much. May be it’s much too soon,” he said.

C.N.R. Selvaraj of Master Bakerz said with maida prices going up, keeping the price of bread the same was becoming more and more difficult. “Manufacturing costs are going up. But we cannot hike our product prices as we will end up losing customers,” he said.