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.
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