Open Market Sale Scheme
Open Market Sale Scheme
Subject: Economy
Section: Food Security
Why in the news?
The Food Ministry is believed to have informed the Prime Minister’s Office (PMO) that wheat procurement could be around 25 mt against the 44 mt target set for it.
Details:
Field level staff have informed higher officials in the Food Corporation of India (FCI) that many farmers are either selling to private traders or holding on to the crops expecting to get better rates on account of rising wheat prices post Ukraine crisis.
Open Market Sale Scheme
Food Corporation of India sells surplus stocks of wheat and rice under Open Market Sale Scheme (Domestic) at predetermined prices through e-auction in the open market from time to time 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.