Centre looks to resume rice sale to states
Centre Plans to Offload Excess Rice: With a rice stockpile of 329.17 LMT as of July 3, 2024, exceeding annual needs, the Centre explores options like OMSS-D sales at reduced prices (currently Rs 29/kg). Despite carrying costs of Rs 6,000 crore last fiscal, only 1.72 LMT sold below cost. States barred from OMSS-D, Karnataka affected for BPL schemes. Ministry considers lowering reserve prices and supplying rice for ethanol amid surplus.
With its granaries full, the Centre is contemplating options to offload “excess” rice, including allowing states to buy rice from Food Corporation of India (FCI) under the Open Market Sale Scheme-Domestic (OMSS-D), The Indian Express has learnt.
According to sources, the available rice stock in the central pool stood at 329.17 lakh metric tonnes as on July 3, 2024. This is separate from un-milled paddy stock, from which the FCI would receive another 153.07 lakh metric tonnes (LMT) of rice. The total rice stock would reach 482.24 LMT, which is higher than the annual requirement of about 400 LMT. With the new kharif crop just 3-4 months away, the rice stock is expected to increase further. As per buffer norms, the Centre is required to maintain a stock of 135.40 LMT of rice as on the first day of July.
Sources said the Centre had to incur a carrying cost of Rs 6,000 crore to maintain the “excess” stock of rice during financial year 2023-24 and it is expected to rise by another Rs 1,600 crore in the current financial year.
Sources said efforts to clear the “excess” stock through the OMSS-D have not yielded the desired results. Despite the Centre offering rice at Rs 29 per kg — much below the economic cost of Rs 39.31 per kg — only 1.72 lakh tonnes of rice was sold through e-auctioning under the OMSS-D during financial year 2023-24.
Last year in June, the Centre had excluded the state governments from the ambit of OMSS-D, barring them from buying rice from the FCI. The move affected states like Karnataka that had sought 2.28 lakh metric tonnes from FCI to provide 10 kg food grains per person per month to all BPL families free of cost under the Anna Bhagya scheme.
A source said that the ministry is also pondering whether to reduce the reserve price of rice from the existing Rs 29 under the OMSS-D. The price should be reduced by Rs 1-2 per kg, said a source. Besides, it is also exploring options of resuming supply of rice to distilleries for ethanol. The source said that these options are on the Empowered Group of Ministers, headed by Home Minister Amit Shah, to take a call. An email seeking a response from Ministry of Consumer Affairs, Food and Public Distribution went unanswered.
Source Link: https://indianexpress.com/article/north-east-india/centre-looks-to-resume-rice-sale-to-states-9435895/
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