MAHAFPC successfully bids for country’s first Reverse e-auction of Onion through MSTC

Pune, 11 Jan: State run MSTC organised reverence e-auction of onion through its platform to give relief to the farmers. Unlike the regular auction where buyers compete by offering higher prices, in reverse auction sellers compete to get business which usually leads to a drop-in price.

Mother dairy was a buyer for the 20 MT of onion and floor price was Rs. 9.5/kg. MSTC was already in contact with organised retailers like Spencer’s & Reliance fresh to purchase the onion on e-RAKAM platform. As a new initiative for the price discovery mechanism, MAHAFPC entered in the bidding and locked the first deal.

While greeting MAHAFPC team, DGM of MSTC Shri. P K Sinha said that MSTC plans to replicate the model, once it is successful, for facilitating sale of other agri produce which are subject to price fluctuations.

According to MAHAFPC, NAFED is already supporting and building the capacities of FPCs through engaging them in PSF procurement operations of onion. It has taken initiative of building storage grid in PPP mode and planning to rope them in operation green. Reverse e auction is very good initiative of MSTC which will provide new window for the FPCs dealing in onion commodity. To give good prices to farmers, Buyers should offer best floor prices linked to cost of production. Retail chains should procure onion through this mechanism or government should made it mandatory to stabilise onion prices.