What is the Open Market Sales Scheme, and why is there a Centre vs. State dispute on foodgrains under it

Explain the concept and intricacies of the Open Market Sales Scheme, and discuss the recent dispute between the Central and State governments regarding foodgrains under it.
The Open Market Sales Scheme (OMSS) is a government initiative that enables the sale of surplus foodgrains from the central pool in the open market. The scheme is aimed at ensuring the availability of foodgrains to consumers at a reasonable price while also providing financial assistance to the government. However, there has been a dispute between the Central and State governments regarding the distribution of foodgrains under the OMSS. Here are a few key points:
  • The Central government wants to distribute the foodgrains through FCI-regulated markets to ensure transparency and reduce any errors or leakages in the distribution process.
  • Some State governments, on the other hand, want to distribute the foodgrains through PDS outlets as they have a wider reach and are more accessible to the masses.
  • The Central government argues that the PDS system is prone to leakages and pilferage, and hence, it is better to distribute the foodgrains through regulated markets.
  • The State governments, on the other hand, claim that the PDS system is more effective in reaching the poor and marginalized sections of society, and hence, should be utilized for distribution.
  • The dispute has been ongoing, with both Central and State governments trying to find a middle ground.
Overall, the OMSS is a crucial scheme aimed at ensuring the availability of foodgrains at a reasonable price while also generating revenue for the government. However, it is essential to ensure that the distribution process is transparent and effective in reaching the intended beneficiaries.
Answered a year ago
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