Government revives Bharat Atta and Rice scheme to stabilize food prices under Open Market Sale Scheme

Hindustan Times - India · 4 Aug 2026 · 2 min read
Prelims · Economy Mains · GS3 Economy High relevance

The Centre has allocated 50,000 tonnes of wheat and 300,000 tonnes of rice under the Bharat Atta and Rice scheme to curb rising staple food prices, utilizing the Open Market Sale Scheme (Domestic) through cooperative agencies.

Key points

Bharat Atta and Rice: The government has allocated 50,000 tonnes of wheat and 300,000 tonnes of rice for retail sale at subsidized rates of ₹35/kg for atta and ₹33/kg for rice until October 31, 2026.

Open Market Sale Scheme (Domestic): The scheme is implemented through central cooperative agencies NAFED, NCCF, and Kendriya Bhandar to stabilize market prices.

Price Stabilisation Fund: A subsidy of ₹2.35/kg is provided on wheat for Bharat Atta, funded under this scheme to cushion consumers from price volatility.

Food Corporation of India (FCI): Stocks are robust with 52.2 million tonnes of wheat and 40.3 million tonnes of rice, well above buffer norms, enabling strategic market interventions.

[GS3-Economy] The move aims to control inflation in essential commodities, a key concern under macroeconomic stability, impacting both consumer prices and agricultural markets.

Calibrated approach: The current allocation is smaller compared to previous phases (2.01 million tonnes wheat and 1.87 million tonnes rice sold till March 2026), indicating a measured response to price trends.

Market signaling: The intervention serves as a deterrent to traders, demonstrating government readiness to release stocks if prices escalate beyond acceptable levels.

[GS2-Governance] This connects to public distribution systems and food security governance, highlighting the role of state mechanisms in ensuring affordability of staples.

Way Forward: Enhance transparency in stock releases through real-time data sharing with states, expand the Bharat brand to more staples, and integrate climate-resilient procurement strategies to buffer against future price shocks.

Key terms

Bharat Atta/Rice

Branded subsidized food products introduced in 2023 to counter inflation. Sold through cooperatives, they represent a targeted market intervention distinct from PDS, expanding access to affordable staples beyond ration cardholders.

Open Market Sale Scheme (Domestic)

A government mechanism to sell food grains (wheat/rice) from FCI stocks in the open market to stabilize prices. Managed by NAFED/NCCF, it supplements PDS by modulating supply-demand dynamics, crucial for inflation control and food security policy.

Price Stabilisation Fund

A central fund established to mitigate volatility in prices of essential commodities. It provides subsidies for market interventions like Bharat Atta, ensuring affordability while protecting farmers' interests through MSP operations.

Food Corporation of India (FCI)

A statutory body under the Ministry of Consumer Affairs that manages India's food security systems. It procures, stores, and distributes food grains for PDS and buffer stocks, playing a pivotal role in implementing NFSA 2013.