16 states oppose Karnataka's demand for rice at cheaper rate: Centre

States supported the Union government’s move to sell grains to private traders to control foodgrain inflation.
Image used for representational purpose only.
Image used for representational purpose only.

NEW DELHI:  Amid the din of Opposition unity talks, 16 states opposed the Congress-ruled Karnataka government’s demand to allow states to buy cheaper rice through the Open Market Sales Scheme (OMSS) of the Centre. The Union government has discontinued selling stocked grains (rice and wheat) to state governments under the OMSS on June 13.

In a recently concluded state food ministers’ meeting in New Delhi, 16 states opposed the demand of the Karnataka government to participate in OMSS, said Sanjiv Chopra, secretary of the Food and Public Distribution Department.

According to Chopra, states and Union Territories (UTs), including Tamil Nadu and Odisha, are of the view that the Centre’s surplus food stock should be used in the larger interest of 140 crore population and “not for a particular section and particular class of people”.

States supported the Union government’s move to sell grains to private traders to control food grain inflation. However, the Union government has failed to sell the grains to private traders. Under the first e-auction on July 5 across 19 states, traders showed a very lukewarm response to the OMSS of rice.  Only 12 buyers turned up. Out of it, only five traders registered bid 170 MT of rice out of a total of 3.86 LMT which the Food Corporation of India offered to sell.

Congress spokesperson Jairam Ramesh has criticised the Union government over the failed e-auction as the government has played petty and vindictive politics on poor food security in Karnataka. “Government’s e-auction has flopped miserably and more than 99.9% of the rice offered for e-auction remains unsold. In any case, it is clear that the Modi government has greater faith in private traders to control inflation than in state government than the public distribution system” states Ramesh.

Cong slams Centre over failed e-auction
Congress spokesperson Jairam Ramesh has criticised the Union government over the failed e-auction as the government has played petty and vindictive politics on poor food security in Karnataka

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