The Centre on Friday reduced the reserve price of FCI rice under the Open Market Sale Scheme (OMSS) by Rs 550 per quintal to Rs 2,250 for states and ethanol producers to boost sales and support food security measures.
According to a Food Ministry order, state governments and state-run corporations can purchase up to 12 lakh tonnes, while ethanol distilleries are allowed to buy up to 24 lakh tonnes at a reduced rate.
The previous reserve price was Rs 2,800 per quintal for both categories.The Food Corporation of India (FCI), which manages rice stocks through weekly e-auctions, will implement the revised policy until June 30, 2025.
Private traders and cooperatives will continue to pay Rs 2,800 per quintal, while central cooperatives like Nafed, NCCF and Kendriya Bhandar selling under the ’Bharat’ brand will pay Rs 2,400 per quintal.The ministry has mandated that the third cycle tender for about 110 crore litres of ethanol during 2024-25 should use FCI rice, with preference given to old rice stocks where feasible.
The sale of rice to states under OMSS is restricted to non-surplus regions requiring additional supplies. The ’Bharat’ brand rice sales to private millers are not permitted but are allowed for hostels, religious institutions, hospitals and charitable organisations.
”The OMSS policy aims to enhance food security and ensure efficient distribution of rice to various stakeholders,” the ministry said in a statement, adding that the decision reflects the government’s commitment to supporting states in fulfilling their welfare scheme obligations and promoting ethanol production.The revision comes amid relatively low rice sales compared to wheat under the same scheme, which aims to boost availability and stabilise prices in the open market.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
