GoI allows NGOs to directly buy food grains from NGOs

On April 8, 2020, the Government of India allowed the Non-Governmental Organizations that are involved in providing food to the needy during the COVID-19 outbreak to get food grains from FCI (Food Corporation of India) directly.

Highlights

The NGOs can purchase food grains from FCIs at prices the state governments buy from the FCIs. Currently, FCI sells rice at Rs 2,250 per quintal and wheat at Rs 2,315 per quintal in the open market. The NGOs can now purchase one to 10 tonnes of food grains from 2,000 godowns.

FCI’s measures to the millers

The FCI has also opened its depots to the millers. This is being done through state governments. Also, the Open Market Sale Scheme through which the millers obtain food grains has been extended. This is to help the flour millers that are facing closures due to lock down.

Under the Open Market Sale Scheme, the GoI sells food grains at pre-determined prices. The scheme aims to enhance the supply of grains during lean season. Under the scheme, the GoI sells wheat and raw rice. The auction under the scheme is conducted by FCI.

Month: Current Affairs - April, 2020