What are the key features of the Open Market Sale Scheme and the ongoing tussle between the Centre and state governments

The Centre-state tussle over the Open Market Sale Scheme continues to create debate. Discuss the key features of the scheme and the issues surrounding it.
The Open Market Sale Scheme (OMSS) is a government initiative aimed at selling commodities such as wheat, rice, and sugar to bulk consumers like state governments, public sector undertakings, and various institutions. The key features of the scheme are as follows: 1. Objective: The primary goal of OMSS is to ensure the availability of essential commodities at affordable prices and maintain buffer stocks to counter any supply shortages. 2. Pricing: The government sets the base price at which the commodities are to be sold, taking into account factors such as procurement costs, storage charges, and transportation expenses. 3. Quota Allocation: Quotas are allotted to states based on their requirements and population size, with each state having a predetermined share for purchase. 4. Sales and Marketing Channels: The scheme involves releases through multiple channels, including e-auctions, utilization of government depots, and coordination with trade associations. The ongoing tussle between the Centre and state governments surrounding the OMSS revolves around two main issues: 1. Allocation Disputes: States often argue that the quota allocation is unfair, with some claiming to receive lesser quantities than required, leading to procurement challenges. 2. Pricing Disputes: There are disagreements regarding the base price set by the government, with some states demanding lower prices to ensure affordability for their populations. These contentious issues have sparked debates and negotiations between the Centre and state governments, with efforts being made to find common ground and ensure a smooth functioning of the OMSS.
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