Food Ministry releases guidelines for open market sale of Rice

The Food Ministry has issued guidelines for initiating Open Market Sale Scheme (OMSS) of rice to states, private traders, and entities engaged in ethanol production.

The government took a decision to sell 3 million tonnes (MT) of wheat in the open market from the Food Corporation of India (FCI) stock starting February 1. Following the decision, the Ministry of Food has issued guidelines for initiating Open Market Sale Scheme of rice to states, private traders and entities engaged in ethanol production.

Although the Food Ministry is yet to decide on the quantity of rice to be sold in the open market from FCI stocks, the guidelines have fixed rice prices for various categories of purchasers, which will be valid for this year.

Commending the move, the traders said that the Ministry’s decision would give a signal to the market for improving supplies and curbing spikes in price.

The Food Ministry has fixed the price of rice to be allowed for purchase by states, which includes fortified rice for distribution in their own schemes, at the rate of ₹ 3,400 per quintal.

The Ministry has also set the reserve price of rice for supply of ethanol production under biofuel policy at ₹ 2,000 per quintal, while the price of ₹ 2,400 per quintal has been fixed for private purchase.

According to the guidelines, private entities apart from those engaged in ethanol production would not be allowed purchase of rice in grain surplus states including Punjab, Haryana, Chhattisgarh, Odisha, Andhra Pradesh and Telangana during the paddy procurement period.