New Delhi, Aug 21 (UNI) The Cabinet Committee on Economic Affairs today approved the Policy on sale of wheat and rice by the Food Corporation of India (FCI) under Open Market Sale Scheme (OMSS), which will help in stabilising open market prices of foodgrains.
The new Policy is aimed at rationalisation of procedures and pricing for release of foodgrains under OMSS (domestic market).
OMSS of wheat will be undertaken only after ensuring that the norms fixed by government for buffer and strategic reserves are met.
The quantity to be released under OMSS, timing of intervention and the locations will be taken by the Ministry of Consumar Affairs, Food and Distribution under the recommendation of the Committee of Secretaries.
As per the new Policy, the government will allocate wheat to States and Union Territories for distribution to retail consumers under OMSS, for bulk consumers the sales will be made by FCI through a process of open tendering.
For release of foodgrains to States and Union Territories, prices will be fixed by a high-level Committee of FCI.
The price will not be lower than minimum support price of wheat, plus cost of transportation from Ludhiana by rail to States or the Union Territory Capital.
The high-level Committee of FCI will also decide the price in the tenders floated by FCI for sale to bulk consumers.
A similar policy will be followed for release of rice under OMSS whenever it takes place.
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