2. FCI’s new norms in first wheat tender to eliminate millers having ‘excess’ stock

India’s First Weekly E-auction for Wheat

• The government will conduct the first weekly e-auction of 1 lakh tonnes on December 4 in several states.
• The FCI has brought new norms which keep processors out of the tender process if they have “excess stock”.
• The new norms have created resentments among millers who view them as’reward’ for private parties not buying in the open market.
• New norm requires bidders to submit an undertaking that they do not have wheat stocks over and above their monthly processing capacity.
• The quantity offered is an estimated requirement in a state and to ensure that it is not used for trading purposes.
• The government declared that FCI is free to sell 25 lt of wheat in the open market under the Open Market Sales Scheme through e-auction to flour mills and other producers of wheat products, processors, and end users by March 31, 2025.

Also read: Food Corporation of India (FCI)