FCI sells 44.7% of 255,000 tn rice offered in open market scheme last week
This story was originally published at 19:24 IST on 3 March 2025
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By Afra Abubacker
NEW DELHI – The Food Corp. of India sold 114,000 tonnes, or 44.7%, of the 255,000 tonnes of rice offered under the open market sales scheme last week. Since August, the Food Corp. has sold only 1.64 million tonnes or 38% of the 4.33 million tonnes of rice offered under the scheme, the agency's data showed. The government's nodal agency has been selling rice on Thursdays and Fridays to clear its swelling stocks.
However, sales by Food Corp. continue to be poor due to the arrival of the new crop across the country. As on Feb. 1, the rice stock in the Food Corp.'s godowns was 34 million tonnes, the highest for a month in 12 years. The stock is much higher than the mandated buffer of 7.6 million tonnes, that is, operational stock of 5.6 million tonnes and strategic reserve of 2.0 million tonnes.
Rice prices at auctions conducted by Food Corp. have fallen due to tepid demand for the grain. The average selling price fell to INR 2,867.6 per 100 kg on Friday from INR 3,167.3 per 100 kg at the start of the auctions in August, data showed.
According to traders, rice offtake from the corporation will improve if the government reduces the reserve price to INR 2,500 per 100 kg from INR 2,800 in the open market sales scheme. To encourage offtake, the government has cut the reserve price of rice for sale to ethanol distilleries to INR 2,250 per 100 kg from INR 2,800 per 100 kg. Rice is among the many food commodities used to produce ethanol.
Amid piling stocks and storage constraints, the government has been encouraging the sale of rice to clear stocks and make room for rabi procurement. The Centre has set wheat and rice procurement targets for 2025-26 at 31 million tonnes and 7.0 million tonnes, respectively. End
Edited by Saji George Titus
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