Syllabus :GS3/Economy
In News
- Recently, the Government announced a significant revision in the Open Market Sale Scheme (Domestic) [OMSS(D)] Policy for the year 2024-25.
Open Market Sale Scheme (Domestic)
- The scheme involves the periodic sale of excess food grains (wheat and rice) from the central pool by the Food Corporation of India (FCI).
- Sales are made in the open market to dealers, bulk consumers, and retail chains at predetermined prices fixed by the Ministry of Consumer Affairs, Food & Public Distribution through e-auction .
- In 2022-23, Karnataka, Tamil Nadu, Jharkhand, Jammu & Kashmir, and Assam bought the highest share of rice under OMSS.
- States’ Role in OMSS: States can acquire food grains under OMSS without participating in auctions to meet additional needs beyond their NFSA allotment.
- The acquired grains are distributed among beneficiaries of the National Food Security Act (NFSA).
- Procurement Process: Wheat and paddy are procured by FCI and state corporations during the Rabi and Kharif seasons based on government procurement estimates.
- Procurement is done in line with the Minimum Support Price (MSP).
Latest Updation
- Fixation of Reserve Price for Rice: The reserve price of rice has been fixed at ₹2,250 per quintal (Pan-India) for sale to State Governments, State Government Corporations, and Community Kitchens, without the requirement of participating in e-auctions.
- Ethanol Production Support: The reserve price of rice for sale to ethanol distilleries for the production of ethanol has also been fixed at ₹2,250 per quintal (Pan-India).
Objectives and Need
- OMSS is activated during the lean season (period between harvests) to manage and enhance the domestic supply of wheat and rice.
- The aim is to reduce food grain prices in the open market and mitigate food grain inflation.
- The recent decisions reflect the Government of India’s commitment to supporting states in fulfilling their obligations under state schemes, promoting food security, and bolstering ethanol production as part of the national energy strategy.
| Do you know? – The Food Corporation of India (FCI) is a statutory body set up under the Food Corporation’s Act of 1964. – It operates under the Ministry of Consumer Affairs, Food & Public Distribution. – Objectives: It aims to safeguard farmers’ interests through effective price support operations. 1. Ensures the distribution of foodgrains across the country. 2. Maintains adequate operational and buffer stocks of foodgrains to secure National Food Security. |
Source :PIB
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