Revised Rice Price Policy Boosts Food Security and Ethanol Production

The Indian government has reduced the reserve price of FCI rice under the Open Market Sale Scheme to Rs 2,250 per quintal for states and ethanol producers. This aims to enhance food security and support ethanol production through increased sales and efficient distribution, while stabilizing market prices.

The Indian government has announced a reduction in the reserve price of rice managed by the Food Corporation of India (FCI) under the Open Market Sale Scheme (OMSS). The revised price is now Rs 2,250 per quintal, down by Rs 550, with an aim to stimulate sales and bolster food security efforts.

According to the Food Ministry's latest order, states and state-run corporations can acquire up to 12 lakh tonnes of the grain at the new rate, while ethanol distilleries are eligible to purchase up to 24 lakh tonnes. The adjustment will be in effect until June 30, 2025, as part of FCI's e-auction policy.

Notably, private traders will continue to pay the previous rate of Rs 2,800 per quintal, while central cooperatives selling 'Bharat' brand rice will receive a slightly reduced rate of Rs 2,400 per quintal. The strategy aligns with the government's goal to improve rice availability and market price stability amidst lower rice sales in comparison to wheat.

(With inputs from agencies.)