Centre Discontinues Sale of Rice and Wheat from Central Pool.

Mumbai, 16 Jun (Commoditiescontrol): The Centre has decided to halt the sale of rice and wheat from the central pool to state governments under the Open Market Sale Scheme (OMSS). This move will impact states like Karnataka, which provide free grains to the underprivileged. The Karnataka government had requested 13,819 tonnes of rice for its scheme under the OMSS, but the Centre has informed them that the sale has been discontinued without e-auction for July. The previous rate for rice was Rs 3,400 per quintal.

As per the latest order from the Food Corporation of India (FCI), the sale of wheat and rice under the OMSS for state governments has been terminated. However, rice will continue to be sold under the OMSS to northeastern states, hilly states, and states facing law and order issues or natural calamities at the existing rate of Rs 3,400 per quintal. The FCI may also sell rice to private parties from the central pool stock to stabilize market prices.

On June 12, the central government announced stock limits on wheat until March 31, 2024, along with offloading rice and wheat under the OMSS to control open market prices and prevent hoarding. While the quantity of wheat for sale under the OMSS was fixed at 15 lakh tonnes through e-auction, the quantity of rice for traders was not specified.

This decision comes at a time of slow progress in the monsoon season and rising prices of rice and wheat. Official data reveals that rice prices have increased by up to 10% in the past year at the mandi level and by 8% in the last month. Monsoon rains are crucial for rice production, as approximately 80% of the country's total rice output is grown during the Kharif season, which begins next month.

It's worth noting that in January, the central government introduced the OMSS policy 2023, allowing states to purchase rice (including fortified rice) and wheat from the FCI for their schemes without participating in e-auctions.

The OMSS is typically implemented to sell food grains, particularly wheat and rice, at predetermined prices in the open market during lean seasons. It aims to enhance the domestic availability of these key grains and stabilize open market prices, especially in regions with shortages.


(By Commoditiescontrol Bureau: 09820130172)