Government sale of wheat will start from Wednesday, December 4 with some new rules

02-Dec-2024 11:14 AM

Government sale of wheat will start from Wednesday, December 4 with some new rules
The government will begin the sale of wheat from Wednesday, December 4, under a new set of rules. 
Wheat Allocation: The first tender will offer 1 lakh tonnes of wheat for sale.

Eligibility Criteria:
Millers who already have more wheat stock than the prescribed stocking norms will be excluded from the auction process.
Every bidder must submit an affidavit confirming that they do not hold more wheat than their monthly processing capacity.

Stock Limitations:
For instance, if a miller has a processing capacity of 2,500 tonnes per month and currently holds 2,450 tonnes, they can only bid for a maximum of 50 tonnes of wheat.

Wheat Quantity and Prices:
The total wheat quantity available for sale through e-auction by FCI will be 25 lakh tonnes, which will be offered by March 31, 2025.
The minimum price for Fair and Average Quality (FAQ) wheat is set at Rs. 2,325 per quintal, and for wheat under Relaxed Specifications (URS), it is Rs. 2,300 per quintal.

Auction Details:
Bidders need to pay the applicable transportation costs and taxes on top of the wheat price.
Participants can bid for a minimum of 10 MT of wheat, with a maximum based on their electricity connection type:
25 MT for Low Tension (LT) connections.
100 MT for High Tension (HT) connections.
If the electricity bill does not specify the type of connection, it will be considered as LT for connections with a sanctioned load of 1-75 KVA. Like before, traders will not be able to participate in the auction.

Processing and Sales:
The allotted wheat must be processed into wheat products within 15 days and released for sale in the open market, ensuring a continuous supply of wheat-based products.
This initiative aims to control wheat prices in the open market and improve supply stability by regulating the sale and distribution process.