Why in News?
The Union government will no longer sell rice and wheat to state governments under the Open Market Sale Scheme (OMSS).
About Omss
- Under OMSS, the Food Corporation of India (FCI) sells surplus stocks of wheat and rice at pre-determined prices through e-auction in the open market.
- Objective: To enhance the supply of food grains, especially wheat, during the lean season and thereby moderate the open market prices, specially in the deficit regions.
- 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 the Targeted Public Distribution Scheme (TPDS) and Other Welfare Schemes (OWS).
- The reserve price is fixed by the government. In the tenders floated by the FCI, the bidders cannot quote less than the reserve price.
- The present form of OMSS comprises 3 schemes as under:
- Sale of wheat to bulk consumers/private traders through e-auction.
- Sale of wheat to bulk consumers/private traders through e-auction by dedicated movement.
- Sale of Raw Rice Grade ‘A’ to bulk consumers/private traders through e-auction.
Food Corporation Of India (FCI)
- FCI is a government body established in 1965 under the Food Corporation’s Act 1964, to manage the food security system in India.
- It functions under Ministry of Consumer Affairs, Food and Public Distribution.
- FCI also conducts e-auction as one of the methods to dispose of its surplus food grains.
- The FCI also maintains buffer stocks of food grains to ensure food security during times of scarcity or crisis.
NCDEX
NCDEX is a commodity exchange platform in India that allows trade in various agricultural and other commodities.
Read also:- Indian Agriculture Scenario
Open Market Sale Scheme (OMSS)
