Lukewarm response to OMSS: FCI offered 7.51 lakh tonne rice, but only 460 tonnes bought

On one hand, the central government has prohibited the states from bidding under the Open Market Sale Scheme (OMSS), on the other hand, the e-auction of wheat and rice being conducted by the Food Corporation of India (FCI) is not getting buyers for rice. But, the fact remains that only 460 tonnes of rice has been sold in the two auctions of rice conducted by FCI, while the total offer was 7.51 lakh tonnes of rice.

To control the prices in retail, the central government has decided to sell wheat and rice from the central pool to retailers, processors and traders in the open market under OMSS. In order to enable more and more traders to participate in the e-auctions of FCI and to make maximum rice and wheat available at the lower level of the market, the Central Government has disallowed the states to participate the e-auction under OMSS.

Only 290 tonnes of rice were sold in the e-auction conducted by FCI on July 12, while 3.63 lakh tonnes of rice were offered for sale. Similarly, only 170 tonnes of rice found takers in the July 5 auction, against an offer of 3.88 lakh tonnes. As far as wheat is concerned, 4.18 lakh tonnes of wheat were offered in the July 12 auction, but only 42 per cent i.e., about 1.75 lakh tonnes was bid by the buyers. In the July 5 auction, 1.29 lakh tonnes of wheat were sold against an offer of 4.07 lakh tonnes.

The Karnataka government had strongly objected to the Centre's ban on giving wheat and rice to the states from the central pool. The Karnataka government termed the Centre's decision as politically motivated, saying that the government has taken this decision to stall its important "Anna Bhagya Yojana". The state government claims that FCI was ready to supply rice at Rs 34 per kg.

The Jharkhand government has also criticised the Centre's decision, saying that due to non-availability of rice from the central pool, the state government has to buy rice at higher price for its welfare schemes.