The Centre’s decision to re-enable Supplyco to participate in the Open Market Sale Scheme (OMSS) has brought little cheer to Kerala.
Food and Civil Supplies Minister G.R. Anil said the unexpected price surge and the inferior quality of the rice stock currently available in Food Corporation of India (FCI) godowns are preventing the State from fully benefiting from the scheme.
Addressing a press conference here on Monday, Mr. Anil said the Centre had considered the State’s demand to permit government-run agencies to procure food grains through the scheme. The facility, reintroduced on July 1, was expected to provide relief to Kerala, a State that relies on various sources to meet its food needs.
However, complications have emerged in the scheme that was touted to offer rice at a subsidised rate of ₹28 per kg. While Supplyco had expressed willingness to purchase 200 metric tonnes of foodgrains through OMSS, the agency was later informed by the FCI that the commodity would be sold at ₹31.73.
The State-run agency also flagged various quality issues with the rice allocated for the scheme. Inspections by Supplyco’s quality assurance manager and the rationing controller revealed that most of the grains stored in FCI godowns were unsuitable for distribution due to discolouration and dust contamination. Only the rice from the Kazhakuttom depot was deemed fit for supply, albeit after necessary mill cleaning.
As a result, the effective cost would further increase to ₹37.23 per kg after transportation, cleaning and accounting for loss of rice quantity. The mill cleaning process will result in an approximate quantity loss of 10%.
“Supplyco would have to incur the high rate, while its e-tendering process yielded raw rice at an average price of ₹35 – 36 per kg. Such factors have created a situation where the State is unable to leverage the Central scheme,” Mr. Anil lamented.
Published - September 02, 2024 07:57 pm IST
