Govt Doubles OMSS Rice Sale Target to Fight Rice Price Hikes
The Indian government has doubled its OMSS rice sale target for 2026-27 to 50 LMT to ensure price stability and prevent hoarding.
In a major move to stabilize rice prices and ensure a steady supply of the essential grain, the Government of India has doubled its target for rice sales through the Open Market Sale Scheme (Domestic) [OMSS (D)] for the 2026-27 financial year. The target has been jumped from 25 LMT to 50 LMT, signaling a strong intervention to protect consumers from market volatility.
Market Intervention and Sales Surge
The Ministry of Consumer Affairs, Food & Public Distribution revealed on Friday that the government has already sold 25 LMT of rice to private parties via e-auctions. This is a significant leap compared to the 11 LMT sold during the same period last year. The ministry highlighted that this surge in sales reflects a more aggressive approach to increasing market supplies through government intervention.
Expanding 'Bharat Rice' Reach
To further bolster availability, additional quantities of 'Bharat Rice' are being allocated to three key agencies: NAFED, NCCF, and Kendriya Bhandar. The government's primary goal is to expand the sale and accessibility of this affordable rice variety across the country, with a particular focus on the Southern States.
These agencies have been instructed to explore every possible distribution channel to ensure that Bharat Rice reaches the common consumer easily and at affordable prices, which is expected to help moderate retail prices across the board.
Crackdown on Hoarding in Southern States
With a view to ensuring reasonable prices, the Central Government has given its concurrence to the state governments of Andhra Pradesh, Karnataka, Kerala, Tamil Nadu, and Telangana. These states are now authorized to impose stock limits on paddy and rice through appropriate control orders. These limits will remain in force until January 31, 2027, to prevent black marketing and hoarding.
Strict Monitoring and Stock Declarations
The ministry has also issued a mandatory order directing all traders, wholesalers, retailers, big chain retailers, and processors/millers across all States and Union Territories to declare their current stock positions of rice and paddy. This transparency measure is required for the six specific categories of rice and paddy:
- Basmati Rice
- Non-Basmati Premium Rice
- Non-Basmati Rice
- Parboiled Rice
- Broken Rice
- Paddy
The Ministry of Consumer Affairs, Food & Public Distribution emphasized that the Central and State Governments will closely monitor the implementation of these measures to ensure that the essential commodity remains available and the market is available and preventing any unfair trade practices.