New Delhi: The central government has decided to lift the one-year ban on Supplyco from participating in the e-auction. The Centre also allowed more time for Kerala to distribute the special rice share through ration shops. The Union government's move has paved the way for the state to market more rice and wheat, and to tide over the shortage of subsidised rice distributed through Supplyco outlets.

The central government made the decision following a meeting between State Minister GR Anil and Union Food Minister Pralhad Joshi.

Supplyco had not participated in the auction under the open market sales scheme, which provides excess food grains in Food Corporation of India warehouses to wholesale merchants.

Kerala will also get relaxation in the central norm on the tide-over allocation of rice for non-priority consumers (blue, and red ration-card holders). The current ceiling mandates that the allocation should be distributed during the corresponding month.

When the monthly ceiling is extended to three months, rice kept aside could be distributed as a special ration during festival seasons.

Wheat flour (atta) distribution could be resumed for blue and white ration-card holders if the Centre agrees to Kerala's demand to reinstate 6,450 metric tonnes of wheat from the tide-over allocation.

Bharat Rice
The Centre had banned state agencies from participating in the e-auction under the open market sales scheme for the past one-and-a-half years. It was alleged ahead of the elections that the ban was to facilitate the distribution of 'Bharat Rice'.

Agencies such as NAFED, NCCF and Kendriya Bhandar distributed rice made available under this scheme for Rs 24 a kilogram as 'Bharat Rice' in all states, including Kerala.