Open Market Sale Scheme (OMSS)

Santhosh Kumar 30/06/2023
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Open Market Sale Scheme (OMSS) upsc notes Food Corporation of India's (FCI) imposed restrictions Refusal to allow states' grain procurement About OMSS Operationalised for foodgrains sale Predetermined prices For bulk consumers and private traders During lean season Nodal Agency: Food Corporation of India (FCI) Selling Mode: Weekly auctions by FCI Platform: National Commodity and Derivatives Exchange Limited (NCDEX) Purpose: Improve domestic grain availability Cool down open market prices Especially in deficit regions Features of OMSS Weekly e-auctions by FCI Reserve price for wheat and rice sale Fixed by Department of Food and Public Distribution (DFPD) Kept uniform throughout the country Sale throughout the year Non-procuring states Non-procurement period in procuring states Quantity for sale decided by DFPD Based on availability and demand Surplus procuring states can't participate in e-auction for rice purchase Significances of OMSS Enhance supply of food grains Especially during lean season Moderates open market prices Prevent wastage and deterioration of food grains In FCI godowns Due to lack of storage space Due to improper maintenance Provides alternative source of food grains For bulk consumers, state governments, UTs For private parties participating in various schemes Generates revenue for the FCI Reduces its subsidy burden on central government Challenges faced by OMSS Impact on farmers Potential lowering of food grain prices Quality control Potential spoilage and wastage Administrative issues Complex and time-consuming e-auctions Does not address structural problems Of food grain management Procurement, distribution, buffer stocking policies Way Forward Careful implementation to ensure benefits outweigh drawbacks

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Categories: [GS3] Public Distribution System (PDS) and Food Security, Schemes/Welfare Initiatives
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