Curb on foodgrain sale to states done to check retail prices for 60 crore consumers, say govt sources
Government sources have told CNBC TV18 that decision to stop the sale of wheat and rice to states under the Open Market Sale Scheme (OMSS) is aimed at supporting small buyers and keeping retail prices in control.
Pointing to the government’s attempt to balance the interest of 80 crore NFSA beneficiaries with the 60 crore people who buy wheat and rice from the open market, sources said that the government will keep looking at interventions in market to keep prices of foodgrains in check.
Indicating that states also don’t consult the Centre before announcing their own schemes, the Department of Food and Public Distribution had said that states first use the procured foodgrains for their own schemes and only give the surplus to the Union Government for central schemes.
Earlier, Centre had imposed stock limits on wheat to curb hoarding as prices were rising despite ample stocks. When a stock limit was imposed on wheat, wholesale mandi price was showing an increase of 8.14%.
An inter-ministerial committee meeting held on 8th June to review prices of agricultural commodities had recommended discontinuing the sale of wheat and rice under OMSS, except for states in the North East, hilly states and states facing law and order issues and natural calamities.
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