Centre's Rationalisation Of Foodgrains Purchase Quantity Under Open Market Sale Scheme Puts Opposition-Ruled States In A Bind

Several states ruled by Opposition parties are taking steps to manage foodgrains for distribution under the Public Distribution System, which is not covered under the National Food Security Act, despite the Union Food Ministry's claim that reducing the quantity of foodgrains a bidder can purchase under the Open Market Sale Scheme (Domestic) is to curb inflation.

The Centre has reduced the quantity that a bidder can purchase in a single bid under the OMSS (D) from the Food Corporation of India (FCI) to range from 10-100 metric tonnes (MT) to accommodate more small and marginal buyers and ensure wider reach of the scheme.

The maximum quantity allowed was previously 3,000 MT per bid for a buyer.

The Centre stated that this would facilitate the release of stocks sold under OMSS(D) to reach the general public immediately.

Congress general secretary Jairam Ramesh criticised the Modi government for allegedly forcing FCI to discontinue the sale of wheat and rice to states through its OMSS, stating that it is hurting the most marginalised sections of society.

He accused the PM of taking out his frustrations from his "Karnataka loss" on the people.

However, he maintained that the Karnataka government would ensure the implementation of the Anna Bhagya guarantee and provide 10 kg of free foodgrains to poor families, reports The Hindu.

Tamil Nadu is seeking to purchase 50,000 tonnes of rice from government agencies other than FCI as the Union government has stopped the supply of rice and wheat under OMSS.

The state provides rice to all ration card holders through universal PDS and was previously buying rice from OMSS at a rate of about Rs 35 for a kilo of rice and then subsidising it.

A senior government functionary of Tamil Nadu stated that they would have to procure the stock of wheat from the open market, but they would manage.

Meanwhile, the Kerala government is reportedly planning to take legal action against the Centre’s food distribution policy.

According to Kerala food department official, historically, the state has not produced sufficient foodgrains due to its tropical climate and focus on cultivating spices.

The Centre had assured the state of ensuring adequate foodgrains, but this promise has not been upheld, as per the official.

The official added that the state does not procure foodgrains from OMSS and is yet to decide on an offer for pulses through OMSS.

The Centre has explained that the production of agriculture crops has been affected in recent years due to untimely rains and a rise in temperature in March.

As a result, the stocks available with FCI are released in a judicious manner under the OMSS (D) by the Centre while ensuring that the overall stock position is maintained at a comfortable level.

The Centre has decided to exclude State governments from the ambit of OMSS(D) as per the revised Policy dated 13 June 2023, in order to ensure that inflationary trends are kept under control while maintaining adequate stock levels in the Central pool.