The Centre on Thursday notified the policy on selling foodgrains from official reserves under the open market sales scheme (OMSS). Under the scheme, the reserve price of wheat has been fixed at ₹2,550/quintal for all categories, up from ₹2,300-2,325 last year, whereas that of rice has been fixed at different rates depending on category of buyers.
For distilleries to produce ethanol, the government has allocated same 5.2 million tonnes (mt) for the ethanol supply year 2025-26 (November-October) and hiked the fixed rate to ₹2,320/quintal from current ₹2,250. Of the 5.2 mt allocated to distilleries in current ESY, as much as 1.7 mt have been lifted so far.
“For the purpose of supplying rice to ethanol distilleries, old/broken rice should be utilised to the extent feasible,” said the Food Ministry in a notification.
New category
The Ministry has introduced a new category — broken rice produced under Rice Milling Transformation scheme — mainly for distilleries, to private parties through e-auction to be made at a reserve price of ₹2,320/quintal from November 1.
The Food Ministry has fixed the sale price of rice at ₹2,480/quintal for Central cooperative agencies like Nafed, NCCF, and Kendriya Bhandar for retail under the ‘Bharat’ brand. The rate applies from November 1, 2025, to June 30, 2026, across their stores, mobile vans, e-commerce platforms and major retail chains.
But, it said that ₹200/quintal subsidy from the Price Stabilisation Fund (PSF) to these cooperative organisations under ‘Bharat’ brand rice has been discontinued from July 1.
No for Bharat brand
The Ministry also said that the cooperative organisations will be allowed in procuring as well as consuming States during procurement period of paddy. But, sale of ‘Bharat’ brand of rice through private millers has been not permitted. The Ministry has further said that institutional buyers can directly buy rice from FCI at ₹2,480/quintal from November 1, 2025, against the current rate of ₹2,400.
Sale of rice to State governments and their agencies (Corporations) as well as to community kitchens has been allowed without participating in e-auction at a fixed price of ₹2,320/quintal between November 1, 2025 and June 30, 2026 — up from ₹2,250 which is valid till October 31. However, the quantity has been reduced to 3.2 mt next year from current 3.6 mt.
The reserve price of rice carrying maximum 10 per cent broken type will be ₹3,090/quintal next year for the e-auction while those with maximum 25 per cent broken type will be ₹2,890.
In case of reserve price of rice, transportation cost has been included while in wheat the rate is excluding freight, the government said.
Published on July 10, 2025