Food Procurement and Distribution – PDS & NFSA, Shanta Kumar Committee, FCI restructuring, Buffer stock, etc.

What is Open Market Sale Scheme (OMSS)?

Note4Students

From UPSC perspective, the following things are important :

Prelims level : OMSS Scheme

Mains level : Schemes related to food security

The Centre has informed the Supreme Court regarding the purchase of grains by the States and the UTs under the Open Market Sales Scheme (OMSS) in 2021-2022 while debunking apprehensions that those without ration cards may be left to die.

Open Market Sale Scheme (OMSS)

  • OMSS refers to the selling of food grains by the government/government agencies at predetermined prices in the open market from time to time.
  • This scheme aims to enhance the supply of grains especially during the lean season and thereby to moderate the general open market prices, especially in the deficit regions.
  • The Food Corporation of India (FCI) on the instructions from the Government, sells wheat and rice in the open market from time to time.
  • This enhances the supply of wheat and rice especially during the lean season and moderates the open market prices, especially in the deficit regions.

Components of the scheme

The present form of OMSS comprises 3 schemes as under:

  1. Sale of wheat to bulk consumers/private traders through e-auction.
  2. Sale of wheat to bulk consumers/private traders through e-auction by dedicated movement.
  3. Sale of Raw Rice Grade ‘A’ to bulk consumers/private traders through e-auction.

Selling through a transparent process

  • For transparency in operations, the Corporation has switched over to e-auction for sale under Open Market Sale Scheme (Domestic).
  • The FCI conducts a weekly auction to conduct this scheme in the open market using the platform of commodity exchange NCDEX (National Commodity and Derivatives Exchange Limited).
  • The State Governments/ Union Territory Administrations are also allowed to participate in the e-auction if they require wheat and rice outside TPDS & OWS.

Answer this PYQ in the comment box:

Q.The economic cost of food grains to the Food Corporation of India is Minimum Support Price and bonus (if any) paid to the farmers plus:

(a) Transportation cost only

(b) Interest cost only

(c) Procurement incidentals and distribution cost

(d) Procurement incidentals and charges for godowns

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Ayush Saraswat
Ayush Saraswat
4 months ago

c