What is Open Market Sale Scheme (Domestic)?
Open Market Sale Scheme (OMSS) refers to the government’s selling of food grains, such as rice and wheat, in the open market at predetermined prices.
Why it is introduced?
The scheme aims to enhance grain supply during the lean season and moderate open market prices.
Working of the scheme
To ensure transparency, the FCI has adopted e-auction as the method for selling food grains under the OMSS (Domestic).
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To ensure transparency, the FCI has adopted e-auction as the method for selling food grains under the OMSS (Domestic).
Weekly auctions are conducted on the NCDEX platform.
State governments and Union Territory Administrations can participate in the e-auction if they require wheat and rice outside TPDS & OWS (Targeted Public Distribution System & Other Welfare Schemes).
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Recently in news
Union Food Ministry maintained that its recent decision to reduce the quantity of foodgrains a bidder can purchase under the Open Market Sale Scheme (Domestic) is to curb inflation.
The Centre recently decided that the quantity that a bidder can purchase in a single bid under the OMSS(D) from the FCI will range from 10-100 tonnes.
Earlier, the maximum quantity allowed was 3,000 tonnes per bid for a buyer.
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Open Market Sale Scheme (Domestic)
Recently in news
According to Central Government
The quantities have been reduced this time to accommodate more small and marginal buyers and to ensure wider reach of the scheme.
This will facilitate the release of stocks sold under OMSS(D) to reach the general public immediately.
Concerns
Concerns remain regarding lower wheat production due to adverse weather conditions.
Potential impact on food security.
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