Free Courses Sale ends Soon, Get It Now


OPEN MARKET SALES SCHEME (OMSS) FOR FOOD CORPORATION OF INDIA STOCKS

10th August, 2023

Copyright infringement not intended

Context: The Centre has decided to release more foodgrain stock in the open market to control the rising prices of essential commodities.

Details

  • The government expects that this step will ensure sufficient availability of rice, wheat and atta in the domestic market and ease the burden on consumers.
  • The Centre has also reduced the reserve price of rice by ₹200 per quintal, making it ₹2,900 per quintal, to encourage more buyers and increase the off-take of foodgrains.

What is OMSS and how does it benefit India?

  • OMSS stands for Open Market Sale Scheme, a government initiative in India that aims to reduce the excess stock of food grains held by the Food Corporation of India (FCI) and state agencies. FCI is a statutory body under the Ministry of Consumer Affairs, Food and Public Distribution that procures stores and distributes food grains to ensure food security in the country.
  • Under OMSS, FCI sells surplus stocks of wheat and rice at pre-determined prices through e-auction in the open market from time to time.

Main objectives of OMSS

  • To enhance the supply of food grains, especially wheat, during the lean season when the production is low and the demand is high.
  • To moderate the open market prices of food grains, especially in the deficit regions where the availability is scarce and the prices are high.
  • To maintain an adequate buffer stock of food grains to deal with fluctuations in production and to meet unforeseen exigencies and natural calamities.

Must Read Articles:

OPEN MARKET SALE SCHEME (OMSS): https://www.iasgyan.in/daily-current-affairs/open-market-sale-scheme-omss

PRICE SUPPORT SCHEME: https://www.iasgyan.in/daily-current-affairs/price-support-scheme

PRACTICE QUESTION

Q. What is the Open Market Sales Scheme (OMSS) for Food Corporation of India (FCI) stocks and what is its significance in addressing foodgrain price fluctuations? What challenges might arise in implementing the OMSS, and how can these challenges be overcome? What strategies could be adopted to enhance the effectiveness of the OMSS and ensure stable food grain prices in the future?

https://epaper.thehindu.com/ccidist-ws/th/th_delhi/issues/47118/OPS/G7BBJKJT1.1+GERBJM7FV.1.html