Karnataka hit as Centre stops rice, wheat sale under OMSS to control price rise

The sale of rice under the OMSS will be continued for northeastern states, hilly states and states facing law and order situations.

The Centre on Wednesday discontinued the sale of rice and wheat from the central pool under the Open Market Sale Scheme (OMSS) to state governments, due to delay in monsoon, said officials from the Ministry of Food and Consumer Affairs.

Due to slow progress of monsoon, paddy sowing has been delayed in rice producing states. Monsoon rains are crucial as about 80 per cent of the country's total rice production is grown during the Kharif season. Though sowing is supposed to start in some southern states, it is yet to start due to delay in monsoon. The sowing will begin next month onwards in northern states, said an official in the Union Ministry of Food and Consumer Affairs.

“If the monsoon faltered this year, the Centre required the rice stock to distribute to states under a public distribution system and release it to the open market to check prices. So as a precautionary, it discontinued the sale of rice and wheat from central pools to states,” said the official.

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The discontinuation of the sale of foodgrains is applicable to the entire country, not limited to Karnataka alone, said the official, adding there was no politics in it.

Besides, the decision came in the backdrop of rising prices of rice and wheat. Rice prices have increased by up to 10 per cent in the last one year at the mandi level, and by 8 per cent in the last one month, as per the official data.

This decision has already been conveyed to Karnataka, which had sought 13,819 tonne of rice for its own scheme under the OMSS without e-auction for July at the rate of Rs 3,400 per quintal.

However, the Food Ministry said sale of rice under the OMSS will be continued for northeastern states, hilly states and states facing law and order situations, natural calamities at an existing rate of Rs 3,400 per quintal, it said.

FCI may liquidate rice under the OMSS to private parties from the central pool stock as per the requirement in order to moderate the market prices, it added.

Generally, OMSS is operationalised to sell foodgrains, especially wheat and rice, at pre-determined prices in the open market from time to time to bulk consumers and private traders during the lean season to improve domestic availability of these two key grains and cool down open market prices, especially in deficit regions.