States can buy rice directly from FCI at Rs 2800 per quintal : Pralhad Joshi

New Delhi: Union Food and Consumer Affairs Minister Pralhad Joshi on Thursday said that states can directly buy rice from the Food Corporation of India at Rs 2,800 per quintal without participating in the e-auction if they need it for their welfare schemes  from August 1, 2024.


Addressing a press conference here, Joshi said, so far no demand came from any state. The decision has been taken to reduce the huge surplus of stocks prior to the commencement of the new procurement season.

Under the OMSS (D), the Department of Food and Public Distribution will directly offload grain to states for Rs 2,800 per quintal (excluding the cost of transportation).

If the States/UTs want to procure more than the stipulated 5 kg of free grain per individual, then they can procure that at the same price at Rs 2,800 per quintal instead of earlier Rs 2,900 per quintal.

Interestingly, the Centre last year did not provide rice to states because of apprehensions of lower output in view of poor monsoon rains. This decision had kicked up a political row as the Centre also rejected Karnataka’s demand for allocation of additional rice for distribute poor under guarantee scheme.

In June 2023, the Centre discontinued the sale of rice and wheat from the central pool under the Open Market Sale Scheme (OMSS) to state governments.

Further Joshi asserted that sale of atta (wheat flour) and rice under the ‘Bharat’ brand which was slated to run till June 30th, 2024 will continue.

On the Pradhan Mantri Garib Kalyan Anna Yojana (PMGKAY), the Union Minister said that Centre has decided to continue to provide free food grains to about 81.35 crore beneficiaries (Antyodaya Anna Yojana (AAY) households and Priority Households (PHH) beneficiaries) for five years with effect from 1st January 2024 with an estimated financial outlay of Rs 11.80 lakh crore totally to be borne by Central Government.

The food grain distributed in 2023-24 stood at 497 lakh tonnes and 125 lakh tonnes up to June in this fiscal.