Govt to release 30 lt wheat for open sale

Govt to release 30 lt wheat for open sale

Subject : Economy

Section : Msc

Context: A committee of ministers headed by Home Minister Amit Shah has approved the release of 30 lakh tonnes (lt) of wheat from the stocks held by the Food Corporation of India (FCI) to control prices in the open market. The process of e-auction of stocks will commence immediately by FCI across the country until March 2023, an official statement said.

Concept :

Open Market Sale Scheme

Under the OMSS policy, the government allows the state-run Food Corporation of India (FCI) to sell foodgrains, especially wheat and rice, at pre-determined prices in the open market from time to time to bulk consumers and private traders.

The aim is to enhance the supply of food grains, especially wheat during the lean season and thereby moderate the open market prices especially in the deficit regions.

The FCI conducts a weekly auction to conduct this scheme in the open market using the platform of commodity exchange NCDEX (National Commodity and Derivatives Exchange Limited).For transparency in operations, the Corporation has switched over to e- auction for sale under Open Market Sale Scheme (Domestic).

The State Governments/ Union Territory Administrations are also allowed to participate in the e-auction, if they require wheat and rice outside TPDS & OWS.

The present form of OMSS comprises 3 schemes as under:

• 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.