How can foodgrains distribution be managed What is Open Market Sales Scheme

Talking Politics with Nistula Hebbar | Open Market Sales Scheme | Now, Centre vs. State on foodgrains.
Foodgrain distribution can be managed by implementing various schemes and policies at both the central and state levels. One such scheme is the Open Market Sales Scheme (OMSS). The OMSS is an initiative aimed at reducing the surplus of foodgrains in government warehouses by allowing them to sell the excess in the open market. This scheme helps to regulate the market prices and bring stability to the market as a whole. Here are some key points to remember regarding the OMSS:
  • The scheme is implemented by the Food Corporation of India (FCI) under the Ministry of Consumer Affairs, Food and Public Distribution.
  • The government fixes a base price for the foodgrains sold under OMSS.
  • The open-market sale price is decided by the demand and supply forces in the market.
  • The scheme requires the states to purchase the required foodgrains from the open market instead of relying solely on the government for supplies.
  • States can also sell the purchased foodgrains to other states facing a shortage.
  • There have been disagreements between the Centre and some states on the implementation of OMSS due to concerns over the rising prices of foodgrains in the open market.
  • The Centre has argued that the scheme helps the farmers by ensuring that their produce is purchased at market prices and no foodgrain goes to waste due to excessive procurement.
Overall, the OMSS is a useful tool in managing foodgrain distribution, but it requires coordination and collaboration between the central and state governments to be effective.
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