On Friday, the Centre reduced the reserve price of FCI rice under the Open Market Sale Scheme (OMSS) for states and ethanol producers by Rs 550 per quintal to Rs 2,250 to boost sales and support food security measures. According to the food ministry order, state governments and state-run corporations can buy up to 12 lakh tonnes, while ethanol distilleries can buy up to 24 lakh tonnes at a lower rate.
The previous reserve price for both categories was Rs 2,800 per quintal. The Food Corporation of India (FCI), which manages rice stocks through weekly e-auctions, will implement the revised policy till 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 will pay Rs 2,400 per quintal if they sell under the ‘Bharat’ brand.
The Central Government Took This Decision
The ministry has mandated that FCI rice be used in the third cycle of tendering for about 110 crore litres of ethanol during 2024-25, with preference given to old rice stocks where possible.
The sale of rice to states under OMSS is restricted to non-surplus areas that require additional supplies. The sale of ‘Bharat’ brand rice to private mill owners is not permitted, but it is allowed for hostels, religious institutions, hospitals, and charitable organizations.
Decision Taken Under OMSS Policy
The ministry said, “The OMSS policy aims to enhance food security and ensure efficient distribution of rice to various stakeholders.” It also said that the decision reflects the government’s commitment to assist states in meeting their welfare scheme obligations and promoting ethanol production.
This amendment has been made amid relatively lower rice sales than wheat under the same scheme, aimed at increasing availability in the open market and stabilizing prices.
