How has discontinuation of OMSS sale by Centre affected the price rise

Find how the Centre checks the price rise by discontinuing the sale of rice and wheat to States under OMSS.
The discontinuation of Open Market Sale Scheme (OMSS) by the Centre has affected the price rise in several ways. 1. Price Stability: By discontinuing the sale of rice and wheat under OMSS, the Centre aims to stabilize prices in the market. This reduces the chance of the prices rising excessively due to supply-demand imbalances. 2. Control Over Inflation: Discontinuing OMSS allows the Centre to exercise greater control over inflation. By regulating the quantity of rice and wheat in the market, the government can prevent price hikes that could negatively impact consumers. 3. Enhanced Market Competition: Without the sale of rice and wheat under OMSS, private players and traders are likely to enter the market more actively. Increased competition among these players could lead to competitive pricing, benefiting consumers and suppressing price spirals. 4. Channelled Distribution: The discontinuation of OMSS enables the Centre to focus on targeted distribution channels for rice and wheat, such as the Public Distribution System (PDS). This ensures that these essential commodities reach the intended beneficiaries in a more efficient and effective manner. Overall, by discontinuing the sale of rice and wheat to states under OMSS, the Centre aims to maintain price stability, control inflation, foster market competition, and improve targeted distribution channels for essential commodities.
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