Context:

States can directly purchase rice from the Food Corporation of India (FCI) under the Open Market Sale Scheme (Domestic) from 1st August without participating in e-auction.

More on the news

• The decision was taken to reduce the huge surplus stocks ahead of the procurement after this Kharif season.
• In June 2023, the Centre discontinued the sale of rice and wheat from the central pool under the Open Market Sale Scheme (OMSS) to state governments.
• If the States wanted to procure more rice over the stipulated five kg of free grain per individual under the Pradhan Mantri Garib Kalyan Anna Yojana (PMGKAY), they can procure it for ₹2,800 per quintal (excluding transportation cost), instead of the earlier rate of ₹2,900 per quintal.
• Food Minister launched the 4.0 version of the Price Monitoring System (PMS) mobile app on which prices of 22 commodities were monitored daily. Now, 16 commodities are also added to it.
  The 16 food items are bajra (whole), jowar (whole), ragi (whole), suji (wheat), maida (wheat), besan, ghee, butter (pasteurized), brinjal, egg, black pepper, coriander, cumin seed, red chillies, turmeric powder and banana. 
• The 38 commodities constitute close to 31 percent of the total CPI weights against 26.5 percent of CPI weights captured by the 22 commodities.
• The Centre had successfully completed all three phases of replacing custom-milled rice with fortified rice in every scheme of the government.
• It achieved 100% coverage of the distribution of fortified rice by March 2024.
• The Centre did not provide rice to states last year because of apprehensions of lower output and Karnataka’s request for its welfare scheme was rejected.

Open Market Sale Scheme (OMSS)

• Under the OMSS, the FCI sells surplus food grains, especially wheat and rice, from the central pool to traders, bulk consumers, and retail chains at pre-determined prices through e-auctions. 
• Bidders can buy specified quantities at set prices, which are routinely revised. 
• States can also procure food grains through OMSS without participating in the auctions for their additional needs beyond what they receive from the central pool for NFSA beneficiaries.

Pradhan Mantri Garib Kalyan Anna Yojana (PMGKAY)

• • It is a scheme as part of Atmanirbhar Bharat to supply free food grains to migrants and the poor.
• • It provides 5 kg of food grain to each family holding a ration card free of cost, in addition to the 5 kg of subsidized food grain already offered through the Public Distribution System (PDS).
• • Wheat has been allocated to 6 States/UTs, - Punjab, Haryana, Rajasthan, Chandigarh, Delhi, and Gujarat, and rice has been provided to the remaining States/UTs.
• • Families belonging to Antyodaya Anna Yojana (AAY) and Priority Households (PHH) categories will be eligible for the scheme.
• • Under PMGKAY Centre would continue to provide free food grains to about 81.35 crore beneficiaries for five years with effect from January 1, 2024.