What is the impact of discontinuing sale of rice and wheat to states under (OMSS)

Discuss how the Centre's recent move to discontinue the sale of rice and wheat to states under the Open Market Sale Scheme (OMSS) may affect the price of these commodities in the market.
The Centre's recent move to discontinue the sale of rice and wheat to states under the Open Market Sale Scheme (OMSS) may have several impacts on the price of these commodities in the market.
  • Firstly, the non-availability of rice and wheat from the central pool may lead to an increase in prices of these commodities in states that were dependent on them.
  • Secondly, the move may lead to a reduction in procurement by states, as they have to procure rice and wheat from the market at a higher cost or from other sources like the Food Corporation of India.
  • Thirdly, this could also result in a decline in the quality of grains procured, as states may be forced to compromise on quality in the wake of higher costs.
  • Fourthly, the move could lead to an increase in black market activities, if the supply of rice and wheat does not meet the demand.
  • Lastly, it may affect the overall food security as well, as states now have to depend on local supply, which may be inadequate or of questionable quality.
While the Centre has cited the move as a cost-cutting measure, its impact on the farmers and consumers remains to be seen.
Answered a year ago
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