{"id":251461,"date":"2023-07-10T18:59:23","date_gmt":"2023-07-10T13:29:23","guid":{"rendered":"https:\/\/blog.forumias.com\/?p=251461"},"modified":"2023-08-28T11:34:25","modified_gmt":"2023-08-28T06:04:25","slug":"open-market-sale-scheme-significance-and-recent-changes","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/open-market-sale-scheme-significance-and-recent-changes\/","title":{"rendered":"Open Market Sale Scheme: Significance and recent changes"},"content":{"rendered":"\n\n\n\n
For\u00a07 PM Editorial<\/strong>\u00a0Archives click\u00a0HERE <\/a>\u2192<\/strong><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

Introduction<\/span><\/b><\/h2>\n

The Open Market Sale Scheme (OMSS) has been in the news recently. Apart from the distribution carried out under the National Food Security Act (NFSA), several states, including those governed by Opposition parties, have their own welfare schemes to provide subsidized or free grains to targeted segments of the population. For this, states rely on OMSS bulk sales for additional food grain procurement.\u00a0\u00a0However, the sudden changes to the scheme announced by the centre have drawn criticism from Opposition-ruled States such as Karnataka and Tamil Nadu.<\/span>\u00a0<\/span><\/p>\n

What is OMSS and what are the objectives?<\/span><\/b>\u00a0<\/span><\/h2>\n

Open Market Sale Scheme (Domestic) [OMSS (D)] refers to <\/span>selling of food grains by Food Corporation of India (FCI) at a predetermined prices in the open market<\/span><\/b> from time to time.<\/span>\u00a0<\/span><\/p>\n

Through the OMSS, the FCI sells excess food grains, particularly wheat and rice from the central pool, in the open market. <\/span>\u00a0<\/span><\/p>\n

This is done through <\/span>e<\/span><\/b>–<\/span>auctions<\/span><\/b>, allowing traders, bulk consumers, and retail chains, among others, to purchase these surplus stocks.<\/span>\u00a0<\/span><\/p>\n

Usually, states are also allowed to procure food grains through the OMSS without participating in the auctions, for their needs beyond what they get from the central pool to distribute to NFSA beneficiaries.<\/span>\u00a0<\/span><\/p>\n

FCI utilizes the OMSS (D) to sell surplus stocks from the Central Pool at predetermined prices to achieve following objectives:<\/span>\u00a0<\/span><\/p>\n