FCI wheat tender to keep off millers

With wheat prices in the open market ruling between Rs 1,075 a quintal and Rs 1,150 a quintal, the FCI tender for sale of four lakh metric tonne of wheat at a floor price of Rs 1232.5 a quintal is likely to get no takers, millers here believe.

When asked the reason behind the price being higher than the market rates and the MSP of Rs 750 per quintal, a Delhi FCI official, said: "The floor price has been fixed by the government and high level committee comprising officials from the food department, commerce department, agriculture, taking into account several factors."

FCI had issued its tender on February 9 for sale of four lakh metric tonne of wheat, both indigenous and imported of all origins except Australian, seeking buyers to submit their bids from February 12 to February 19.

Roller Flour Miller Federation Secretary Veena Sharma said that it was very difficult for FCI to receive bids on such a high price.

"The wheat price for the Indian variety even at far ends of Tamil Nadu and Kerala comes at about Rs 1,220 to Rs 1,230 a quintal whereas the red variety offered by FCI will cost not less than Rs 1,280 a quintal taking into account the transportation charges, loading and unloading charges etc, which are very high," she said.

Why would a buyer purchase an imported variety, generally not preferred, at such prices as against the available Indian variety at low prices, she added.

Wheat miller Ajay Goyal too shared similar sentiments.

"When prices in the market are as low as Rs 1150 a quintal why would one bid for the FCI tender? It is a sham and a total waste of time," he added.