Limits of expansion – on Open Market Sale Scheme (OMSS)

Source: The post is based on the article “Limits of expansion” published in “The Hindu ” on 7th July 2023.

Syllabus: GS 2- Government policies and intervention & GS 3 – issue related to poverty and hunger

News: The National Conference of Food Ministers failed to resolve the issue of the discontinuance of rice and wheat sales to States under the Open Market Sale Scheme (OMSS) in view of the Centre’s restrictions.

Read – Lessons from the fracas over foodgrains

What was the aim of The National Conference of Food Ministers?

The aim was to discuss important topics such as creating an action plan for the procurement of coarse grains and placing a strengthened focus on food and nutritional security.

Why has this issue arisen?

The issue arises because a) the state government launched a large-scale scheme without having a comprehensive plan and mechanism in place, b) The Union Food Ministry halted the sale of surplus grain under the open market sale scheme, affecting the state ‘s plan to use OMSS to implement their scheme.

What are the lessons for the state from this issue?

Reduced dependency on the Centre for State schemes: States should not overly rely on the Centre or its agencies for implementing state-specific food sector schemes. This is underscored by the Food Corporation of India’s withdrawal from providing additional foodgrains for the Anna Bhagya 2.0 programme in Karnataka.

Resource identification and cost-effectiveness: States need to identify their own resources and implement food security schemes in a cost-effective manner. As demonstrated by the situation in Karnataka, finding an equivalent supplier at a feasible cost can be a challenge.

Feasibility of expanding entitlements: States should consider the feasibility of expanding entitlements, such as increasing the amount of foodgrain provided from 5 kg to 10 kg, considering their own resource constraints.

Advance planning: The states should undertake careful and advanced planning for their food security schemes. The situation in Karnataka brings into focus the pitfalls of ill-planned attempts to replicate Union government schemes without considering the states’ individual resources and contexts.

What should be done?

With potential El Niño impacts on foodgrain production and procurement on the horizon, the Centre and the states are urged to concentrate on strengthening the Public Distribution System. Instead of trying to expand existing schemes, the focus should be on making current systems more foolproof and efficient.