Na khaunga, na khane doonga takes literal turn

Maqsood Maniyar | NT

Bengaluru: Prime Minister Narendra Modi’s slogan “na khaunga, na khane doonga” (won’t usurp nor let others) took a literal turn as Union government’s order to restrict Food Corporation of India (FCI) from selling rice to states appears to have backfired, seeing how e-auctions have yielded few private takers for the same grain.

Two e-auctions by the corporation offered 3.86 lakh metric tonnes (MT) of rice but have managed to sell only 460 MT of the grain to private companies.

Reports in The Hindustan Gazette and The Indian Express confirmed the poor showing.

Cong, BJP trade barbs

The issue takes on a political colour because of the tug of war-between the Congress government in Karnataka and the BJP-ruled Centre. On June 9, the State government wrote to FCI requesting 13,819.485 metric tonnes (MT) of rice. The reply came on June 12 approving the same.

However, a day later, the Centre wrote to FCI ordering them to stop the sale of the grain to states under Open Market Sale Scheme (OMMS-Domestic).

People sympathetic to the Centre claimed if the monsoon falters, FCI would need rice to distribute to states and open markets to manage the prices. The rice is for meant for the State government’s ‘Anna Bhagya’ scheme that promises 10 kgs free rice monthly to Below Poverty Line (BPL) and Antyodaya card holders.

It is to be noted that BPL card holders already get five kgs of free rice under the National Food Security Act. The state promised another five kgs from their end and had sought to buy rice for the same.

Congress-ruled Chhattisgarh promised 1.5 MT of rice. Later on, the Karnataka government promised to provide cash to beneficiaries in lieu of rice since an insufficient amount of the grain was available.

Chief Minister Siddaramaiah held that the BJP was keeping the rice from Karnataka because to hurt Congress’ political standing. Karnataka requires 2.28 lakh MT of rice at Rs 3,600 per quintal. FCI is currently selling rice to private parties at a cheaper Rs3,100 per quintal.

The FCI website disclosed that states are the biggest buyers of rice from them, acquiring 1.16 lakh MT till May 25 this year. Notably, Karnataka bought 1.12 lakh MT or 97 per cent of the same.

Two e-auctions

The first FCI e-auction took place on July 5, making 3.86 lakh MT of rice available to 19 states and the NEF (North East Frontier) region but sold only 170 MT. However, it attracted bids from private parties from three states and the NEF. Maharashtra finished as the largest buyer with 70 MT. Gujarat bought 50 MT while Karnataka acquired 40 MT and the NEF bid for 10 MT.

On Wednesday, FCI managed to move 290 MT in its second eauction out of a possible 3.75 lakh MT. Private companies from Karnataka and Kerala bid for 100 MT of rice each and Maharashtra bought 90 MT.

The corporation conducted the auction on the platform M Junction Services Limited, which disclosed that the Karnatakabased company SLR Boiled Rice bought the rice. Sunrise Trading Company from Kerala did the same.

From Maharashtra, New DG Food Agro bought 50 MT and Parvati Agro Industries acquired 40 MT of the grain.