Raise allocation for PDS supplies, improve OMSS sale: PMEAC

To make better use of overflowing granaries, the Prime Minister's advisory panel PMEAC today suggested increasing the allocation of foodgrains for supply through ration shops.

The government could also plan for liberal release of wheat 'well in advance' under the Open Market Sales Scheme (OMSS) for state governments and bulk consumers, the Prime Minister's Economic Advisory Council said in its economic outlook for 2010-11.

"In order to leverage public stocks... The allocation under the Public Distribution System (PDS) could be raised from the current level of 47 million tonnes in 2010-11 to 50 million tonnes," it said.

The PMEAC also noted that the government should start selling rice to retail consumers under OMSS as the grain stock in the central pool at the beginning of 2010-11 season in October is expected to be 24 per cent higher at 26.7 million tonnes, compared to the previous year.
    
It further suggested that the government should closely monitor the futures prices of wheat and use the electronic spot market for periodic release of stocks.
    
"The pilot scheme for e-auction run by the Food Corporation of India (FCI) in Delhi through the NCDEX and MCX could be scaled up for this purpose," it added.
    
According to the PMEAC, state governments have lifted only 6.5 lakh tonnes of rice under the OMSS scheme launched in October, 2009, against the allocation of 10 lakh tonnes. This scheme is valid till September.
    
With regard to wheat, the state governments have lifted only 4.54 lakh tonnes of the grain, against the central allocation of 20 lakh tonnes, due to the lack of distribution channels for getting the wheat to retail consumers, it said.
   
However, the sale of wheat to bulk consumers improved after the floor price was brought down. Bulk consumers had lifted 12.4 lakh tonnes as on June 28 this year, against the allocation of 21 lakh tonnes, it added.