Open Market Sale Scheme (OMSS)

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)

1. Transportation cost only
2. Interest cost only
3. Procurement incidentals and distribution cost
4. 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)

1. The families coming under the category of ‘below poverty line (BPL)’ only are eligible to receive subsidized food grains.
2. 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.
3. 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. 1 and 2 only
2. 2 only
3. 1 and 3 only
4. 3 only