FCI Chief Combats Rice Inflation: Encouraging Traders for Enhanced Domestic Availability

In light of rising rice inflation, the Food Corporation of India (FCI) Chairman and Managing Director, Ashok K Meena, has voiced his concerns and taken steps to address the issue. During a recent media briefing, Meena emphasized the exceptional quality of PDS rice and encouraged traders to participate in the Open Market Sale Scheme (OMSS) to enhance domestic availability and curb price increases.

Enhancing OMSS Participation for Rice

To bolster participation in the OMSS, the FCI has implemented several changes. The bid quantity per bidder has been increased from 1,000 tonnes to 2,000 tonnes, while the minimum bid quantity has been reduced from 10 tonnes to 1 tonne. These adjustments aim to attract more rice traders and processors to the scheme.

Addressing Quality Concerns

Acknowledging potential apprehensions about the quality of PDS rice, Meena took a unique approach to dispel these concerns. He invited reporters to sample fried rice and kheer prepared using PDS rice randomly selected from FCI godowns. By demonstrating the high quality of the rice, Meena aimed to encourage traders to participate in the OMSS without reservations.

Rice Stock and Availability

Meena highlighted the ample availability of rice stocks, with a surplus of 20 million tonnes. This surplus exceeds the requirements for the Pradhan Mantri Garib Kalyan Anna Yojana (PMGKAY) and other welfare programs. Additionally, the FCI has procured approximately 23.7 million tonnes of rice during the ongoing 2023-24 kharif marketing season.

Impact of OMSS on Wheat Prices

The FCI Chairman also highlighted the success of the OMSS in controlling wheat prices. Through the scheme, around 48.12 lakh tonnes of wheat have been sold since June. Furthermore, 86,084 tonnes of wheat have been sold to agencies like Nafed, NCCF, and Kendriya Bhandar for conversion into wheat flour and subsequent sale at a subsidized rate of Rs 27.50 per kg under the Bharat atta brand.

Government Measures to Control Prices

In addition to the OMSS, the government has implemented other measures to control wheat and rice prices. These include a ban on wheat exports and restrictions on the export of certain rice varieties. The government has allocated 101.5 lakh tonnes of wheat for OMSS sales until March 2024.

By addressing rice inflation concerns, enhancing OMSS participation, dispelling quality apprehensions, and implementing various measures, the FCI, under the leadership of Ashok K Meena, is actively working to ensure the availability of rice at reasonable prices in the domestic market. These efforts contribute to the government's broader objective of ensuring food security and mitigating the impact of inflation on consumers.