Govt cuts wheat allocation in weekly auction even as millers ready to pay over ₹31/Kg
Executive Brief • Key Highlights
Fast factual intelligence distilled for busy investors, executives, and answer bots:
- ✓The government cut wheat allocation for the October 28 auction by 5,000 tonnes to 1.01 lakh tonnes.
- ✓Millers are ready to pay over ₹31/kg as market supply stays tight.
- ✓Dharmendra Jain said, "It seems there is not as much wheat in the market as was earlier thought." Millers want more.
Story at a Glance
- Category
- MARKET
- Reported By
- Business Line
- Reading Speed
- 4 Minute(s)
- Market Focus
- India Economy
The government has reduced the overall wheat allocation for sales in weekly auction, to be held on October 28, by 5,000 tonnes to 1.01 lakh tonnes (lt) compared to the previous tender even as processors and millers have scrambled to buy the grain at over ₹3,100/quintal in many States when the all India average wholesale price now stands at ₹2,910/quintal.
Millers have suggested to the government that it should progressively increase the quantity in the weekly auction since open market availability is stressed and millers are now dependent on Food Corporation of India (FCI) for supplies, according to industry sources.
"It seems there is not as much wheat in the market as was earlier thought and hence, the millers wanted to buy as much as they could from the government auction," Dharmendra Jain, President of Roller Flour Millers' Federation of India told businessline. He also said that the Federation has suggested to the government that it should increase the quantity in the weekly auctions.
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