In a proactive move to regulate the retail prices of essential commodities, the Government of India has been actively engaged in market intervention, specifically focusing on rice, wheat, and atta. As part of this initiative, weekly e-auctions are being conducted, and the latest, the 26th e-auction, took place on December 20, 2023.
During the auction, a total of 4 Lakh Metric Tonnes (LMT) of wheat and 1.93 LMT of rice were offered. The results of the auction revealed that 3.46 LMT of wheat and 13,164 Metric Tonnes (MT) of rice were successfully sold. The weighted average prices stood at Rs 2178.24 per quintal for wheat and Rs 2905.40 per quintal for rice.
In a bid to curb potential hoarding and ensure efficient utilization, the government has introduced new measures effective from the latest e-auction. Henceforth, only bidders with Low Tension (LT) electricity connections are allowed a maximum bid of 50 MT of wheat, while those with high-tension (HT) electricity connections can bid up to 250 MT of wheat.
This strategic move aims to encourage processing and timely release of wheat stocks into the open market. To further streamline the auction process and promote wider participation, the government has set specific limits on the quantity of rice that can be bid. Starting from the December 20, 2023 e-auction, bidders can place bids for a minimum of 1 MT and a maximum of 2000 MT of rice. Bids are to be made in multiples of 1 MT, focusing on rice under the Open Market Sales Scheme (Domestic) [OMSS (D)].
These measures have already shown positive results, as evidenced by the notable increase in rice sales during the recent e-auction. The quantity sold surged to 13,164 MT, a substantial rise from the 3,300 MT sold in the previous e-auction.
