The Centre has decided to allow state governments to directly purchase rice from the Food Corporation of India (FCI) without the need for e-auction participation.
Details of the Policy
- Purchase Price: States can now buy rice from the FCI at a rate of Rs 2,800 per quintal under the open market sale scheme (domestic).
- Statement from Officials: Pralhad Joshi, the Union Minister of Consumer Affairs, Food, and Public Distribution, confirmed this decision.
Purpose of the Decision
The new policy aims to address the issue of large surplus stocks at FCI godowns before the start of the new procurement season.
Previous Restrictions and Impact
- Previous Restrictions: Last year, the Centre required state governments to participate in e-auction to purchase rice. This restriction notably affected the Karnataka government.
- Karnataka’s Needs: Following their electoral victory, the Congress government in Karnataka needed an additional 2.34 lakh tonnes of rice to meet their election promise of providing free 10 kg of rice to poor families under the Anna Bhagya Yojana.
Criticism and Discontinuation
- Criticism: The Karnataka government criticized the Centre for discontinuing the sale of stocked rice and wheat to states under the open market scheme.
- Current Scheme: Under the revised open market scheme, the Centre will now sell grain to states for Rs 2,800 per quintal, excluding transportation costs.
Multiple-Choice Questions (MCQs):
- What is the new purchase price for rice from the FCI under the open market sale scheme (domestic)?
- A) Rs 2,500 per quintal
- B) Rs 2,800 per quintal
- C) Rs 3,000 per quintal
- D) Rs 3,200 per quintal
- Who is the Union Minister of Consumer Affairs, Food, and Public Distribution?
- A) Amit Shah
- B) Piyush Goyal
- C) Pralhad Joshi
- D) Nirmala Sitharaman
- Why has the Centre allowed states to buy rice directly from the FCI without e-auction?
- A) To support state governments financially
- B) To reduce surplus stocks at FCI godowns
- C) To increase the price of rice
- D) To fulfill international trade agreements
- What was the impact of last year’s restriction on the Karnataka government?
- A) They could not participate in the rice e-auction.
- B) They needed to import rice from abroad.
- C) They were unable to fulfill their election promise of providing free rice.
- D) They successfully fulfilled their election promise without any issues.
- Under the current open market scheme, what is the cost of rice excluding?
- A) The cost of milling
- B) The cost of storage
- C) The cost of transportation
- D) The cost of procurement