NEW DELHI: The Centre has allowed state governments to directly buy rice from the Food Corporation of India (FCI) without participating in e-auction.
“States can buy rice from the Food Corporation of India without participating in e-auction at Rs 2,800 per quintal under the open market sale scheme (domestic),” said Pralhad Joshi, Union Minister of Consumer Affairs, Food and Public Distribution.
The decision has been taken to reduce the huge surplus stocks at FCI godowns prior to the new procurement season.
Last year, the Centre had put restrictions on state governments to participate in e-auction, which impacted the Karnataka government. After winning assembly polls last year, the Congress government in Karnataka needed extra 2.34 lakh tonnes of rice to fulfil its election promise of providing free 10 kg rice to poor families under the Anna Bhagya Yojana.
The Centre, however, discontinued selling stocked rice and wheat to states under the open market scheme, drawing criticism from the Karnataka government.
Under the open market scheme, the Centre will offload grain to states for Rs 2,800 per quintal (excluding transportation cost).