States can buy rice from FCI at Rs 2,800 per quintal: Pralhad Joshi

States can directly buy rice from the Food Corporation of India at Rs 2,800 per quintal without participating in the e-auction if they need it for their welfare schemes, Union Food and Consumer Affairs Minister Pralhad Joshi said on Thursday.

The Centre last year did not provide rice to states because of apprehensions of lower output in view of poor monsoon rains. Karnataka had demanded rice last year for its welfare scheme but the request was rejected.

In June 2023, the Centre discontinued the sale of rice and wheat from the central pool under the Open Market Sale Scheme (OMSS) to state governments.

Addressing a press conference here, Joshi said, "States can directly buy rice from central pool at Rs 2800 per quintal. They do not need to participate in the e-auction process."

He said there has been no demand so far from any state.

According to an official statement, States can purchase rice from Food Corporation of India (FCI) under the Open Market Sale Scheme (Domestic) without participating in the e-auction from August 1, 2024.

The decision has been taken to reduce the huge surplus of stocks prior to the commencement of the new procurement season.

Under the OMSS (D), the Department of Food and Public Distribution will directly offload grain to states for Rs 2,800 per quintal (excluding the cost of transportation).

Joshi asserted that sale of atta (wheat flour) and rice under the Bharat' brand which was slated to run till June 30th, 2024 will continue.

On the Pradhan Mantri Garib Kalyan Anna Yojana (PMGKAY), the Union Minister said that Centre has decided to continue to provide free food grains to about 81.35 crore beneficiaries (Antyodaya Anna Yojana (AAY) households and Priority Households (PHH) beneficiaries) for five years with effect from 1st January 2024 with an estimated financial outlay of Rs 11.80 lakh crore totally to be borne by Central Government.

The food grain distributed in 2023-24 stood at 497 lakh tonnes and 125 lakh tonnes up to June in this fiscal.

Joshi also informed that ethanol production capacity has increased to 1589 crore litres per annum, which is sufficient to meet domestic ethanol requirement of the country.

With payment of about Rs 1.05 lakh crores, more than 94.8 per cent sugarcane dues for the current 2023-24 sugar season have been cleared taking cane dues to the lowest level, he said.

On One Nation One Ration Card, Joshi noted that Rs 145 crore portability transactions have been carried out nationwide till date. A total of 293 lakh tonnes of food grains to the food law beneficiaries either inter-state or intra-state have been carried out.