Why is the Open Market Sale Scheme causing a tussle between the Centre and the states
Examine the conflict between the central government and the states regarding the Open Market Sale Scheme and the issues surrounding it.
- The Open Market Sale Scheme (OMSS) is causing a tussle between the Centre and the states due to various reasons.
- One of the main issues is the pricing of essential commodities. The Centre decides the minimum support price (MSP) for commodities, but states argue that it does not adequately cover their production costs.
- The states believe that the OMSS, which allows the Centre to sell commodities below the MSP, disrupts regional markets and affects farmers' income.
- Another point of contention is the procurement and distribution of commodities. The states argue that the Centre's procurement mechanisms favor certain states over others, leading to unequal distribution.
- The central government's decision to directly sell commodities through e-commerce platforms bypassing states' involvement has also irked the states, as it undermines their authority.
- Additionally, the states claim that the OMSS affects tax revenue collections as states lose out on inter-state trade taxes when commodities are directly sold by the Centre.
- The lack of consultation and coordination between the Centre and the states further exacerbates the conflict over the OMSS.
- States demand a greater say in decision-making and more control over the distribution and pricing of essential commodities to alleviate these concerns.
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a year ago