FCI Wheat Prices Hold Firm in Auction as Demand Stays Strong: 8 Million Tonnes Sold

The average price of wheat in the Food Corporation of India (FCI) e-auction remained stable despite an increase in offtake, indicating a robust demand until the next crop's arrival in mid-March. Since beginning wheat sales on June 28 to boost open market availability, the government has sold 8.004 million tonnes (mt). In the latest auction, of the 5 lakh tonnes (lt) offered, 4.78 lt were sold, an increase in the offer quantity by 50,000 tonnes from the current auction round.

The average selling price of wheat on Wednesday was ₹2,259.16/quintal, slightly higher than the previous week's ₹2,255.35, and up from ₹2,172.94 on December 13. The government has set the reserve price at about ₹2,129/quintal, significantly lower than the economic cost of ₹2,703. In the current round, the average selling price in the eastern region was ₹2,305, exceeding the minimum support price of ₹2,275 for the next season, while in other regions, prices ranged between ₹2,17 and ₹2,265.

Significant variations were observed in the highest bidding prices across states. In Karnataka, there was a notable drop in the highest bidding price from ₹2,750 last week to ₹2,450. Similarly, states like Gujarat and Maharashtra also saw declines in the highest prices compared to the previous week. Conversely, the highest bidding price in West Bengal remained stable at ₹2,550, whereas it decreased in Bihar to ₹2,480 from ₹2,550, and the prices were ₹2,555 in Uttar Pradesh, ₹2,400 in Maharashtra, and ₹2,525 in Gujarat.