Minister for Food and Public Distribution recently announced that grain deficient states can directly purchase from FCI under the Open Market Sale Scheme (OMSS) without participating in e- auctions.
Permit on Buying Rice:
- States are now permitted to buy rice directly from the Food Corporation of India (FCI) at ₹2,800 per quintal under the Open Market Sale Scheme (Domestic), without participating in e-auction.
- This decision is aimed at reducing the surplus stocks at FCI godowns before the new procurement season begins.
- The government had restricted states to purchasing rice through e-auction.
- This affected Karnataka‘s ability to secure the additional 2.34 lakh tonnes of rice needed for the Anna Bhagya Yojana.
- The upgraded Price Monitoring System (PMS) 4.0 mobile app, which monitors the prices of 38 commodities, an increase from the previous 22.
- The new items include various grains, pulses, dairy products, vegetables, and spices.
About the Open Market Sale Scheme (OMSS):
- Its purpose is to enhance the supply of food grains, especially wheat, during the lean season to moderate open market prices, particularly in deficit regions.
- It is administered by Food Corporation of India (FCI).
- Surplus stocks of wheat and rice are sold at pre-determined prices through e-auction on the National Commodity and Derivatives Exchange (NCDEX) platform.
- Participants include Bulk consumers, private traders, State Governments, and Union Territory Administrations
- Reserve Price is the fixed by the government; bidders cannot quote less than the reserve price.
- Schemes under OMSS:
- Sale of wheat to bulk consumers/private traders through e-auction.
- Sale of wheat to bulk consumers/private traders through e-auction by dedicated movement.
- Sale of Raw Rice Grade ‘A’ to bulk consumers/private traders through e-auction.
Ref: Source
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Frequently Asked Question:
What is the Open Market Sale Scheme (OMSS)?
The OMSS is a government initiative designed to enhance the supply of food grains, particularly wheat and rice, during lean seasons. It helps to moderate market prices, especially in regions with food deficits.
Who administers the OMSS?
The OMSS is administered by the Food Corporation of India (FCI).
How does the OMSS work?
Surplus stocks of wheat and rice are sold through e-auction on the National Commodity and Derivatives Exchange (NCDEX) platform at pre-determined prices.