State Direct Purchases: New Policy on Rice Procurement

States can purchase rice from the Food Corporation of India (FCI) at Rs 2,800 per quintal without participating in e-auctions. This measure, announced by Union Minister Pralhad Joshi, aims to reduce surplus stocks. The Centre continues to support welfare schemes and has increased ethanol production capabilities.

States now have the option to buy rice directly from the Food Corporation of India at Rs 2,800 per quintal, bypassing the traditional e-auction process, according to Union Food and Consumer Affairs Minister Pralhad Joshi's announcement on Thursday.

Previously, the Centre withheld rice from states due to concerns about lower output amid poor monsoon rains, a decision that affected Karnataka’s welfare schemes. This year, however, a new policy will allow state governments to purchase rice starting August 1, 2024, to manage surplus stocks.

Joshi highlighted that the sale of wheat flour (atta) and rice under the 'Bharat' brand will continue until June 30, 2024. Additionally, the Centre has committed to providing free food grains to over 81.35 crore beneficiaries for five years under the Pradhan Mantri Garib Kalyan Anna Yojana (PMGKAY) starting January 1, 2024.