How does discontinuing sale of rice and wheat under OMSS help curb price rise

Explain the Centre's decision to discontinue the sale of rice and wheat to the States under OMSS, and how it checks price rise.
  • The sale of rice and wheat to the states under the Open Market Sale Scheme (OMSS) is intended to stabilize the market prices of these food grains.
  • The decision to discontinue the sale of rice and wheat to the states under OMSS helps to prevent the excessive accumulation of grains in the market, which plays a significant role in curbing price rise.
  • The government has also decided to stop the sale of grains under OMSS to prevent the diversion of cheap grains intended for the poor to the open market, where they may be sold at a higher price.
  • The move will give private traders greater access to the grain market, which will help to bring down prices.
  • The government's efforts to control inflation by reducing the supply of grains in the market, combined with the decision to allow private traders greater access to the market, is expected to help stabilize food prices and reduce inflation.
  • The government has also increased import tariffs on some food items, which would help to reduce imports and boost domestic production, thus helping to stabilize food prices.
Overall, the decision to discontinue the sale of rice and wheat under OMSS is intended to stabilize market prices and curb any further price rise, while also ensuring that food grains are available to those who need it the most.
Answered a year ago
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