What is the impact of the Center's decision to restrict the Open Market Sale Scheme on foodgrain purchase

States are now searching for alternative ways to purchase foodgrains as the Center has limited open market sale scheme.
The decision by the Center to restrict the Open Market Sale Scheme (OMSS) on foodgrain purchase has had a significant impact on the food grain purchase process in various states. Here are some of the impacts:
  • States are forced to search for alternative methods: With the Open Market Sale Scheme being limited by the Center, the states have to find alternative ways to purchase food grains to maintain their rationing system. States like Jharkhand, Uttar Pradesh, and Chhattisgarh have already started exploring alternative ways to buy grains by working directly with farmers and purchasing from other sources.
  • Higher procurement costs: The restriction on OMSS has led to the government having to spend more money to purchase food grains through other means. This could lead to an increase in procurement costs and ultimately impact the overall budget of the government.
  • Increased food prices: As the procurement costs increase, the prices of food grains could also go up, which would hit the common people the most, especially those living in poverty.
  • Impact on farmers: With the government being the biggest purchaser of food grains, the restriction on OMSS could hit farmers as they may have to sell their crop at lower prices to other buyers. This may lead to a decline in their income and adversely affect their livelihoods.
Overall, the restriction on OMSS by the Center has complex and far-reaching impacts on the food grain purchase process, the government budget, and farmers.
Answered a year ago
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