In a significant policy move, the Central government has slashed the reserve price of rice sold by the Food Corporation of India (FCI) under the Open Market Sale Scheme (OMSS) by ₹550 per quintal, bringing it down to ₹2,250. The reduction aims to bolster food security initiatives and promote ethanol production by making rice more accessible to key stakeholders.
A Food Ministry order released on Friday outlined that state governments and state-run corporations can procure up to 12 lakh tonnes of rice at the reduced price. Ethanol distilleries, pivotal to the nation’s biofuel agenda, have been allocated a quota of 24 lakh tonnes. The revised pricing policy will remain effective until June 30, 2025.
Key Pricing Changes:
- State entities and ethanol producers will pay ₹2,250 per quintal.
- Private traders and cooperatives will continue to pay ₹2,800 per quintal.
- Central cooperatives like Nafed, NCCF, and Kendriya Bhandar, operating under the “Bharat” brand, will pay ₹2,400 per quintal.
The ministry emphasized that private millers are excluded from purchasing “Bharat” brand rice, which will only be available to hostels, religious institutions, hospitals, and charitable organizations.
The government has mandated that the third tender cycle for ethanol procurement in the 2024-25 season, amounting to approximately 110 crore litres, prioritize the use of FCI rice, with a preference for older stock where feasible.
Sales to states under OMSS will be restricted to non-surplus regions requiring additional supplies. This aligns with the government’s objective to enhance the availability of rice for welfare schemes and stabilize prices in the open market.
“The revised OMSS policy underscores the government’s commitment to supporting state welfare schemes and boosting ethanol production,” the ministry said in a statement.
The adjustment comes as rice sales under OMSS have lagged behind wheat, prompting efforts to improve rice distribution and ensure its affordability for targeted stakeholders.