Tepid response from traders for sale of rice under open market sale scheme

The Food Corporation of India (FCI) received a tepid response to the sale of rice to small traders under the open market sale scheme (PMSS) in the second e-auction round on Wednesday.

The FCI conducted another round of e-auctions to sell 4.29 lakh tonnes of wheat and 3.95 lakh tonnes of rice from the buffer stock to bulk consumers to control retail inflation and improve domestic supply.

Though the exact number of traders participating in bid was not known, sources in the Ministry of Food said the response was lukewarm.

The ministry will release the exact number of traders participating in the tender and the quantity they bid in a day or two, the sources added.

In the first round of e-auction held on July 5, the FCI had offered 3.88 lakh tonne of rice, but only 170 tonne was sold to five bidders.

Earlier on Monday, Union food secretary Sanjeev Chopra asserted that the OMSS for rice was started after many years, and this was done to give a signal to the market against any artificial price rise in the retail market.

More than the quantity of rice sale under the OMSS, he said, “the intention was to give a signal to the market that the stock is with the government and will use it in the interest of common man to bring down the prices. …That signal is more important..

The sale of rice under the OMSS has not ended. It will be continued until March 31, 2024, and the sale will happen via e-auction every week, he had added.

He had also said that the government may tweak the scheme if required in the future to encourage more traders to participate. However, he ruled out allowing the states to participate in the auction.

Congress-ruled Karnataka and the Centre have locked horns over the OMSS rice, with the latter maintaining that it does not have enough stocks to meet the demand if all states start seeking rice from the central buffer stock.