New Delhi: Rice stored in FCI godowns and distributed to states through the Public Market Sale System (OMSS) will no longer be available to state government agencies. FCI will reportedly hand over rice to the central government agencies as NAFED. Kendriya Bhandar and National Cooperative Consumer Federation (NCCF) for sale under Bharat brand across the country. The chairman has sent a letter to the union ministry of food, public distribution and consumer affairs. The decision in the name of ‘Bharat brand’ will cast a shadow over Kerala too. 

According to the letter sent on January 18, two and a half lakh tonnes of rice was handed over to these agencies in the first phase. As per this, Bharat brand rice is distributed in Kerala as well. Kerala argues that this will affect Supplyco, which has been supplying rice to Kerala by storing it in FCI godowns. This decision may also affect the public distribution system (PDS) in the state. 

In the first phase, NAFED has been instructed to store 1.25 lakh tonnes, Kendriya Bhandar 75,000 and NCCF 50,000 tonnes of rice. A second letter explaining the sale of Bharat brand rice was sent to FCI, the chairman and the MDs of three central agencies by the union food ministry on January 30. It is proposed to procure and distribute five lakh tonnes of rice to consumers of all categories and 2.5 lakh tonnes will be procured in the first phase. This is till March 31. It is priced at Rs 24 per kg. The centre has granted a subsidy of Rs 5.41 per kg to all three agencies. Thus, the agencies can procure rice at Rs 18.59 per kg and can be sold to consumers at a maximum price of Rs 29.  

This amount has been fixed by the centre by considering the expenses required by the agencies for storage, GST, etc. It has been proposed to distribute FCI raw rice stock exclusively through these three agencies by March 31. Although only white rice is available as Bharat rice now, FCI also has stock of Red rice. State government sources say that this has not been available to other agencies.

According to the current practice, when the centre invites tenders for the rice stored in FCI godowns, Supplyco and other agencies participate to procure the rice. With the centre’s sudden move to change this practice, Supplyco will face a massive backlash.