The Food Corporation of India’s attempt to sell excess rice in the open market to bulk buyers has not found favour with traders.
Against an approved quantity of two million tonne of rice to be sold under Open Market Sale Scheme (OMSS) through weekly auctions, only 350 tonne have been purchased by private buyers since the programme’s launch on April 1.
Sources told FE that the FCI is aiming at selling rice at around Rs 2,300 per quintal excluding local taxes, which is more than the prevailing market price.
A food ministry official said that the rice prices for the open market have been kept at the level, keeping in mind the MSP, for ruling out ‘recycling’ of rice procured by the FCI and state agencies. The government carries out rice procurement during October-September period.
Under OMSS, the rice is being to sold to private purchasers at around R2,340 per quintal for grade A quality procured by the FCI.
Sources said the minimum and maximum auction quantity of rice being offered under OMSS is in the range of 50 tonne to 3,500 tonne per weekly bids.
“We have even allowed various state government agencies to participate in the bidding process for purchase of rice,” a food ministry official said.
“We were aiming at uploading excess rice stocks in the open market for curbing any occurance of price rise,” a food ministry official said.
Sources said that the government is yet to take call on winding up OMSS for rice following lukewarm response.
Besides, even bids under OMSS for wheat in non-procuring states have not got any encouraging response. Only 400 tonne of wheat had been sold in last six weekly auctions.
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