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The Hindu
The Hindu
National
The Hindu Bureau

States look for alternative ways to buy foodgrains as Centre restricts open market sale scheme

Even as the Union Food Ministry maintained that its recent decision to reduce the quantity of foodgrains a bidder can purchase under the Open Market Sale Scheme (Domestic) is to curb inflation, several States ruled by Opposition parties have started taking steps to manage foodgrains to be distributed under the Public Distribution System, which is not covered under the National Food Security Act.

The Centre had recently decided that the quantity that a bidder can purchase in a single bid under the OMSS (D) from the Food Corporation of India (FCI) will range from 10-100 metric tonnes (MT). Earlier, the maximum quantity allowed was 3,000 MT per bid for a buyer. “The quantities have been reduced this time to accommodate more small and marginal buyers and to ensure wider reach of the scheme. This will facilitate the release of stocks sold under OMSS(D) to reach the general public immediately,” the Centre said in a press note.

The Opposition parties had questioned this. “By forcing FCI to discontinue the sale of wheat and rice to States through its OMSS, the Modi government is hurting the most marginalised sections of society. How petty must the PM be to take out his frustrations from his Karnataka loss on the people,” Congress general secretary Jairam Ramesh had said. He had, however, maintained that the Karnataka government will ensure Anna Bhagya guarantee is implemented and 10 kg of free foodgrains are provided to poor families.

Tamil Nadu is trying to purchase 50,000 tonnes of rice from government agencies other than FCI. “We give rice to all ration card holders. It is universal PDS in this State. We get 2,74,00 tonnes of rice from the Government of India. To manage the supplies, we were buying from OMSS at a rate of about ₹35 for a kilo of rice and then subsidising it. Now, the Union government has stopped the supply under OMSS. We have to find an alternative now. The Union government has also stopped supply of 23,000 tonnes of wheat. We have to procure this stock of wheat from the open market. But we will manage, we have to manage. The welfare activities for people will continue,” a senior government functionary of Tamil Nadu said.

Kerala government is planning legal steps against the Centre’s food distribution policy. “Historically, Kerala does not produce sufficient foodgrains as the State is known for cultivating spices due to its tropical climate. The Centre’s assurance of ensuring adequate foodgrains for the State is not maintained now. We will take all possible steps against this,” a State Food Department official said adding that the State does not procure foodgrains from OMSS. “We were recently offered pulses through OMSS. We are yet to take a call,” the officer added.

The Centre had said that in recent years, production of agriculture crops was affected due to untimely rains, rise in temperature in the month of March, etc. “Therefore, the stocks available with FCI are released in a judicious manner under the OMSS (D) by the Government of India while ensuring that the overall stock position is maintained at a comfortable level. In order to ensure that the inflationary trends are kept under control while ensuring adequate stock levels in the Central pool it has been decided to exclude State governments from the ambit of OMSS(D), as per the revised Policy dated June 13, 2023,” the Centre’s note said adding that the decision was not taken all of a sudden. The Centre had announced the policy on June 13 and communicated to FCI with copy to all States governments.

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