In order to boost sales and support food security measures, government has slashed Food Corporation of India (FCI) rice price under the Open Market Sale Scheme (OMSS) by Rs 550 per quintal to Rs 2,250 for states and ethanol producers. 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.
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 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.
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