States Can Buy Rice Directly from FCI Without E-Auction
Context:
Recently, the government introduced a new policy that allows states to buy rice directly from FCI bypassing an e-auction for Rs 2,800 per quintal under the Open market sale scheme.
- This move was to manage surplus stocks and to ease grain procurement.
Relevance:
GS-03 (Economy)
Key Highlights
- The rice will be sold at a fixed price of Rs 2,800 per quintal, excluding transportation costs and the concerned states and UTs are allowed to buy additional rice beyond the limit of 5 kg per person at the same rate, which has been reduced from Rs 2,900 per quintal.
- Department of Consumer Affairs has expanded the Price Monitoring System to include 16 additional commodities which makes the total to 38.
- The newly added commodities include Bajra, Jowar, Ragi, Suji (wheat), Maida (wheat), Besan, Ghee, Butter, Brinjal, Egg, Black Pepper, Coriander, Cumin seed, Red chilies, Turmeric powder, and Banana.
- The new version 4.0 of the PMS Mobile App was also launched to enhance price monitoring.
Significance
- This new facility helps states and UT’s to procure grains more efficiently and easily.
- This policy will help FCI to regulate surplus stock and also to manage new procurements which can avoid wastage. It also ensures better stock management.
- By expanding the commodities under the PMS, the government can formulate better policies that would control food prices and inflation.
- The PMS mobile app, gives real-time information about retail and wholesale prices of the essential commodities has been launched by Department of Consumer Affairs and it also expected to improve the quality of prices data for reporting daily prices by the price reporting centres.
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