A Food Corporation of India warehouse. File
| Photo Credit: The Hindu
As Opposition-ruled State governments corresponding to Karnataka and Tamil Nadu criticised the Centre’s resolution to prohibit the availability of foodgrains via the Open Market Sale Scheme (Domestic) to 100 metric tonnes (MT), the Food Corporation of India (FCI) made it clear on June 23 that the Centre’s precedence was to curb inflation.
Chairman and Managing Director of the FCI Ashok Okay.Okay. Meena instructed reporters that the utmost amount to be bought via OMSS was restricted to accommodate small wheat processors and merchants. State governments had alleged that such a transfer was towards the curiosity of the poor.
Controlling inflation
When requested concerning the criticism of the State governments, Mr. Meena mentioned the State governments would carry on demanding. “State governments are going to give the foodgrains to the same beneficiaries under the Pradhan Mantri Garib Kalyan Ann Yojana or they would be using the foodgrains for State schemes where identified beneficiaries are there. The Government of India is already providing foodgrains for 80 crore people. Additionally, 60 crore consumers need to be taken care of. OMSS operations would be carried out in the interest of those 60 crore people so that inflation remains under control for the rest of the country,” Mr. Meena mentioned.
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He added that the federal government had now directed the FCI to conduct the e-auctions of wheat and rice to test the inflationary traits. “We will give 100 MT for a bidder. We are keeping another condition that whoever purchases cannot export or give it to another State’s agencies. We are giving only for consumption. They need to have a GST number and State governments are not permitted (to buy from bidders),” Mr. Meena mentioned.
He mentioned devices, together with decreasing the import obligation on wheat was under consideration of the Centre if inflationary development continued. “Government will use other instruments if the prices do not come down. This includes reducing import duty on wheat,” he added.
He mentioned no State would demand for extra foodgrains under OMSS because the Centre’s coverage was clear. When requested about FCI’s earlier promise to give meals shares to Karnataka, he mentioned the federal government labored at completely different ranges. “When the government policy in writing is available, the government has functional autonomy to take decision based on the existing policy. So some order was issued. The Karnataka regional officer of FCI did not know that such discussions were going on. So the moment government order was issued, and the policy was changed, the Karnataka region has taken immediate steps and complied with the Centre’s decision,” he mentioned.
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He mentioned Manipur was the one State which obtained foodgrains under OMSS as an exemption contemplating the legislation and order state of affairs. “The bidding is also limited to the local buyers by ensuring that the GST registration of the State is mapped and checked before stocks are released. These measures are taken to ensure a wider local reach for the stocks offered in a particular State. Four MT of wheat is being offered in the first e-auction from 457 depots across the country,” he mentioned including that 5 MT rice can be supplied within the subsequent public sale scheduled in July.
