The discontinuation of sale of rice and wheat under the Open Market Sales Scheme (OMSS) to states can have a significant impact on the price rise of these commodities. Here are some of the ways in which this can happen:

• Reduction in supply: The discontinuation of sale means that there will be a reduction in the overall supply of rice and wheat in the market. This reduction in supply can lead to an increase in prices, especially if the demand for these commodities remains the same.
• Increase in market prices: The OMSS sale price is generally lower than the market price. With the discontinuation of the scheme, it is likely that market prices will increase, as buyers will need to source the commodities from elsewhere.
• Impact on food inflation: Rice and wheat are essential commodities, and any increase in their prices can have a significant impact on food inflation. With the discontinuation of the OMSS sale, there could be an increase in food inflation in the short term.
• Impact on the government's food subsidy bill: The government's food subsidy bill could increase if prices rise, as it will need to spend more to provide subsidies to those who are eligible.
• Impact on farmers: The discontinuation of OMSS could have an impact on farmers who sell their produce through this scheme. They may need to find other buyers or sell at a lower price, affecting their income.

These are some of the ways the discontinuation of sale of rice and wheat to States under OMSS can impact price rise.