Setback for Supplyco, Centre bars states from buying rice from FCI stock

New Delhi: The rice distributed by Food Corporations of India (FCI) through the Open Market Sale Scheme (OMSS) will no longer be available to state government agencies.

The Union Ministry of Food, Public Distribution, and Consumer Affairs sent a letter to the FCI Chairman directing them to hand a portion of its stock to cooperative agencies such as NAFED, Kendriya Bhandar, and the National Cooperative Consumer Federation (NCCF) to sell the food grain under the Bharat brand across the country.  This decision will affect Kerala.

According to the letter sent on January 18, two and a half lakh tons of rice were handed over to these agencies in the initial phase. Meanwhile, Kerala contended that the Centre's move would affect the Civil Supplies Corporation, popularly known as Supplyco, and the public distribution system in the state.

In the initial phase, the government has directed NAFED, Kendriya Bhandar and NCCF to keep a stock of 1.25 lakh, 75000, and 50000 tons of rice. Later, the Union Ministry sent another letter explaining the sale of Bharat brand rice. In another letter sent to Union Food Ministry on January 30 to the MDs of three cooperative agencies, the government proposed procurement and distribution of five lakh tons of rice to all categories.