Economics
Context: The third e-auction to offload wheat under Open Market Sale Scheme (Domestic) took place recently.
About OMSS:
- The government sells the excess stock of food grains in the open market through e-auctions through this scheme.
- The Food Corporation of India (FCI) on instructions from the Government, sells wheat and rice in the open market from time to time.
- The purpose of OMSS is to dispose of surplus stocks of wheat and rice held by FCI(Food Corporation of India)and to regulate the prices of wheat in the open market.
- FCI conducts weekly auctions for the OMSS for wheat on the platform of the National Commodity and Derivatives Exchange Limited (NCDEX).
- NCDEX – a commodity exchange platform in India that provides a platform for trading in various agricultural and other commodities.
Source: AIR
Previous Year Questions
Q.1) The economic cost of food grains to the Food Corporation of India is Minimum Support Price and bonus (if any) paid to the farmers plus: (2019)
- Transportation cost only
- Interest cost only
- Procurement incidentals and distribution cost
- Procurement incidentals and charges for godowns
Q.2) With reference to the provisions made under the National Food Security Act, 2013, consider the following statements: (2018)
- The families coming under the category of ‘below poverty line (BPL)’ only are eligible to receive subsidized food grains.
- The eldest woman in a household, age 18 years or above, shall be the head of the household for the purpose of issuance of a ration card.
- Pregnant women and lactating mothers are entitled to a ‘take-home ration’ of 1600 calories per day during pregnancy and for six months thereafter.
Which of the statements given above is/are correct?
- 1 and 2 only
- 2 only
- 1 and 3 only
- 3 only
