Tamil Nadu seeks nine lakh tonnes of rice additionally from the Centre

Tamil Nadu seeks additional rice allocation due to price revision under OMSS(D) policy, impacting free supply to NPHH cardholders.

The Tamil Nadu Civil Supplies Corporation has sought from the Food Corporation of India (FCI) allocation of nine lakh tonnes of rice for meeting the shortfall in its requirements. 

This follows the move by the Union Ministry of Consumer Affairs, Food and Public Distribution to effect a “significant revision” in the price of rice under the Open Market Sale Scheme (Domestic) [OMSS(D)] policy for 2024-25. The reserve price of rice had been fixed at ₹22.5 per kg (pan-India) for sale to State governments, enterprises of the State governments and community kitchens without the requirement of participating in e-auctions. Two years ago, the Centre hiked the price for the States to ₹34 per kg from ₹23 a kg and in June 2023, it had even suspended the sale of rice and wheat to the States. 

Tamil Nadu is in need of additional allocation as it supplies, on an average, one lakh tonnes of rice per month free of cost to Non Priority Household (NPHH) cardholders too. The National Food Security Act, being implemented in Tamil Nadu since November 2016, ensures the supply of foodgrains free only to cardholders belonging to the categories of Priority Households (PHH) and Antyodaya Anna Yojana (AAY).

As against the monthly allocation of 2.97 lakh tonnes for Tamil Nadu, the average monthly offtake of rice is around 3.63 lakh tonnes. The additional quantity required over and above the Centre’s allocation is being fully borne by the State government. 

As for the reduction in the price, an official of the Central government explains that “we have worked out the cost of procurement. Besides, the stock position is good. So, it’s a trade off between inclusion of storage charges and the open sale scheme.” The official emphasises that the present scheme is applicable only to the State governments.