Government to Resume Rice Sales to States from FCI Stock on August 1

The government will resume supplying rice to state governments from the Food Corporation of India's (FCI) stock starting August 1, ending a 13-month halt. This suspension, which began in June 2023, was intended to "maintain buffer stocks and control prices," according to the Centre. The decision faced criticism from the Congress party, which argued that it was aimed at obstructing their promise to provide an additional 5 kg of free rice to the poor under Karnataka's “Anna Bhagya” scheme.

In a written response to a Rajya Sabha query, the Ministry of Food and Consumer Affairs announced that starting August 1, 2024, Govts of non-surplus states which require additional rice to meet their requirements will be allowed to purchase rice under Open Market Sale Scheme (domestic) without participating in e-auction.

Starting next month, the FCI will sell rice to state governments at Rs 2,800 per quintal without requiring e-auctions. Private buyers will also face the same base price for bulk purchases but will be required to participate in e-auctions.