FCI sold 87,750 tn of wheat in 6th open market sale FY19.

Food Corp of India sold 87,750 tn of wheat in the sixth round of auctions under the open market sales scheme for 2018-19 (Apr-Mar). The state-run agency had offered 2 mln tn of the grain at the auction. Food Corp of India holds wheat auctions for sale under the open market scheme, where bulk buyers like flour mills and bakery product manufacturers usually purchase. In Punjab and Haryana, most of the quantity was sold around the base rate of 1,900 rupees per 100 kg. In Madhya Pradesh, it was sold at 1,925 rupees. The agency had sold 95,450 tn of wheat in the fifth round of auctions that was held on Aug 16. For Jul-Sep, the government has fixed the base price for selling wheat under the open market sales scheme at 1,900 rupees per 100 kg. In wheat-producing states such as Punjab, Haryana and Madhya Pradesh, the government holds auctions at the base price. In states that don’t produce wheat, an additional price equivalent to ex-Ludhiana freight is added to the base price. From this year, the government has decided to change its base price for wheat offered under the open market scheme on a quarterly basis, to factor in carrying costs. For Oct-Dec, the base price has been set at 1,925 rupees per 100 kg, and would increase by 25 rupees to 1,950 rupees per 100 kg.