NEW DELHI: The govt on Friday reduced the reserve price of rice stored with the Food Corporation of India (FCI) by Rs 550 per quintal for ethanol producers and states to boost sales and support food security measures. The decision came amid reports of FCI godowns having almost four times more than the required buffer stock, and distilleries not buying the grain due to the high price fixed by the govt earlier.
In a statement, the food ministry said minister Pralhad Joshi announced revision in the Open Market Sale Scheme (OMSS) policy for 2024-25, aiming at enhancing food security and ensuring efficient distribution of rice to various stakeholders. “The reserve price of rice has been fixed at Rs 2,250 per quintal for sale to state govts, state govt corporations, and community kitchens, without the requirement of participating in e-auctions… The reserve price of rice for sale to ethanol distilleries for the production of ethanol has also been fixed at Rs 2,250 per quintal,” it said.
The earlier reserve price was Rs 2,800 per quintal. TOI on Dec 20 had reported the govt’s plan to reduce the sale price of FCI rice to reduce its stock, which was becoming unsustainable.
As per the ministry’s order, state entities can purchase up to 12 lakh tonnes, while ethanol distilleries are allowed to buy up to 24 lakh tonnes at the reduced rate. This tweaked policy will be in force till June 30.
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 to get FCI rice. 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.
