Reduction in Reserve Price of FCI Rice under OMSS

The Centre has reduced the reserve price of Food Corporation of India (FCI) rice under the Open Market Sale Scheme (OMSS) by Rs 550 per quintal. This adjustment lowers the price to Rs 2,250 per quintal specifically for states and ethanol producers.

Key Details of the Scheme

• Eligibility and Quotas:
  • State governments and state-run corporations can purchase up to 12 lakh tonnes.
  • Ethanol distilleries are allowed to procure up to 24 lakh tonnes at the reduced rate.
• Previous and Current Prices:
  • The previous reserve price was Rs 2,800 per quintal for both states and ethanol producers.
  • Private traders and cooperatives will continue paying Rs 2,800 per quintal.
  • Central cooperatives like Nafed, NCCF, and Kendriya Bhandar will pay Rs 2,400 per quintal under the 'Bharat' brand.

Implementation and Duration

The revised policy will be effective until June 30, 2025, and managed through weekly e-auctions. The measure is designed to support food security and bolster ethanol production.

Additional Provisions

• Preference for ethanol production will be given to old rice stocks wherever feasible.
• Rice sales to states under OMSS are restricted to non-surplus regions requiring additional supplies.
• Sales under the 'Bharat' brand are not permitted to private millers but can be made to hostels, religious institutions, hospitals, and charitable organizations.

Government's Goal

This policy aims to enhance food security, stabilize prices in the open market, and ensure efficient rice distribution to various stakeholders. It reflects the government's commitment to aiding states in fulfilling welfare scheme obligations and promoting ethanol production.

Context and Impact

The revision comes in response to relatively low rice sales compared to wheat under the same scheme, intending to boost availability and stabilize market prices.