The Indian Food Ministry is contemplating a reduction in the reserve price of rice sold through e-auction under the open market sale scheme (OMSS) to boost offtake and bring down market rates. The proposed cut in reserve price, if approved, could be implemented from the next week's auction. The reserve price may be reduced to around ₹2,600/quintal from the current ₹2,900/quintal. This move aims to make rice more accessible to common people by reducing market rates. Despite previous adjustments to encourage offtake, there's still room for further improvement. Bidders have been allowed to bid as low as 1 tonne per auction, compared to the previous minimum of 10 tonnes. Additionally, the maximum quantity for purchase in an auction by one trader/miller has been doubled to 2,000 tonnes. Despite these measures, the offtake on January 10 was only 7,000 tonnes out of the 1.85 lakh tonnes offered by the Food Corporation of India (FCI). The reduction in the reserve price is seen as a strategy to enhance the appeal of the open market sale of rice. FCI's Chairman and Managing Director, Ashok Kumar Meena, has expressed confidence in rice availability, with a stock of 508.47 lakh tonnes against the buffer norm of 76.10 lakh tonnes as of January 1. Despite a 14% drop in rice procurement in the first three months compared to the previous year, FCI aims to approach the target of 521 lakh tonnes. The government is also considering introducing a "Bharat" brand for rice, similar to Bharat atta and Bharat Dal, sold through cooperatives like NAFED, NCCF, and Kendriya Bhandar.
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India