How does the Indian government's 'Open Market Sale Scheme' work, and are there alternative ways for states to purchase foodgrains
What is the Open Market Sale Scheme, and why are some states seeking alternative ways to buy foodgrains?
- The central government buys food grains from farmers at Minimum Support Prices and stores it in the central pool.
- Under OMSS, the government sells these grains to states, who can then distribute them to those in need.
- The prices at which the grains are sold to the states are market-driven. However, the government often subsidizes the prices to ensure they are affordable.
- States are allowed to buy any quantity of grains they need, subject to availability.
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a year ago