States to sell grains to old homes, jails at cheaper rates

Concerned over low offtake of grains under the open market sales scheme (OMSS), the food ministry has allowed states to distribute grains to schools, colleges, old age homes, jails, police and paramilitary forces, staff canteens and similar institutions.

The grains allocated under the scheme are usually sold only in the open market by the states.

“According to our assessment, of the total allocation of 2 million tonnes of wheat and rice to states under the OMSS, only 40 per cent has been lifted till now. We have made some modifications and allowed states to sell grains to more institutions and agencies,” food minister K V Thomas said.

However, the states can sell the grains at an increased price of just Rs 2 per kg, while grains are sold to the states at high prices. The centre sells grade A rice at Rs 15.85 per kg and common rise (or low grade rice) at Rs 15.41 per kg to the states while it is Rs 23-24 per kg in the open market. Similarly, wheat is sold at Rs 15-16 per kg in the open market, and the same is available at Rs 11 per kg under OMSS.

These factors have deterred the states to lift the grain from the central warehouses. “The states can sell these grains to more institutions now after adding Rs 2 per kg as transportation and storage cost to the price. Then too, the sale price will be less than the market rate and will help in cooling the retail market,” Thomas said. He said overall offtake by states for public distribution system (PDS) has shown a marked improvement in the last few months.