With reference to the Open Market Sale Scheme (OMSS) consider the following statements:1.Under the Scheme, the Food Corporation of India (FCI) buys surplus food grains from traders, bulk consumers, and retail chains at predetermined prices.2.The objective of the scheme is to improve and regulate domestic supply and availability of the two grains (wheat and rice) and bring down their prices in the open market essentially making the scheme a measure to curb food grain inflation.Select the correct statements using the codes given below:

Q. With reference to the Open Market Sale Scheme (OMSS) consider the following statements:
1.Under the Scheme, the Food Corporation of India (FCI) buys surplus food grains from traders, bulk consumers, and retail chains at predetermined prices.
2.The objective of the scheme is to improve and regulate domestic supply and availability of the two grains (wheat and rice) and bring down their prices in the open market essentially making the scheme a measure to curb food grain inflation.
Select the correct statements using the codes given below:

[A] 1 only

[B] 2 only

[C] Both 1 and 2

[D] Neither 1 nor 2

Answer: B

Notes:

Explanation –

Statement 1 is incorrect. Under the Open Market Sale Scheme, the Food Corporation of India (FCI) from time to time sells surplus food grains from the central pool, especially wheat and rice in the open market to traders, bulk consumers, retail chains and so on at predetermined prices.

Statement 2 is correct. The objective of the scheme is to improve and regulate domestic supply and availability of the two grains (wheat and rice) and bring down their prices in the open market essentially making the scheme a measure to curb food grain inflation.

Source: ForumIAS

Post-Mains Strategy Session by Mr. Ayush Sinha | ForumIAS