How does the Open Market Sales Scheme lead to a conflict between the Centre and States on food grains

The Centre and States are in a conflict over foodgrains due to the Open Market Sales Scheme.
  • The Open Market Sales Scheme (OMSS) allows the Food Corporation of India (FCI) to sell surplus food grains in the open market.
  • The Centre believes that the OMSS will help to reduce the carrying costs of surplus food grains and prevent them from rotting in godowns.
  • The States, however, are concerned that the sale of surplus food grains in the open market will lead to lower prices for farmers' produce and affect their revenue generation.
  • The States also fear that the sale of surplus food grains in the open market will lead to hoarding and black marketing.
  • The Centre argues that the OMSS has been designed to be market-neutral and will not affect farmer prices.
  • The States, however, are unconvinced and have demanded that the OMSS be suspended.
  • The conflict over the OMSS highlights the need for better coordination and communication between the Centre and States on food grain management.
  • The Centre and States must work together to ensure that the interests of both farmers and consumers are protected.
Overall, the conflict over the OMSS reflects the complexity of food grain management in India and the challenges of balancing multiple competing interests.
Answered a year ago
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