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Context: The Centre has decided to release more foodgrain stock in the open market to control the rising prices of essential commodities.

Details

• The government expects that this step will ensure sufficient availability of rice, wheat and atta in the domestic market and ease the burden on consumers.
• The Centre has also reduced the reserve price of rice by ₹200 per quintal, making it ₹2,900 per quintal, to encourage more buyers and increase the off-take of foodgrains.

What is OMSS and how does it benefit India?

• OMSS stands for Open Market Sale Scheme, a government initiative in India that aims to reduce the excess stock of food grains held by the Food Corporation of India (FCI) and state agencies. FCI is a statutory body under the Ministry of Consumer Affairs, Food and Public Distribution that procures stores and distributes food grains to ensure food security in the country.
• Under OMSS, FCI sells surplus stocks of wheat and rice at pre-determined prices through e-auction in the open market from time to time.

Main objectives of OMSS

• To enhance the supply of food grains, especially wheat, during the lean season when the production is low and the demand is high.
• To moderate the open market prices of food grains, especially in the deficit regions where the availability is scarce and the prices are high.
• To maintain an adequate buffer stock of food grains to deal with fluctuations in production and to meet unforeseen exigencies and natural calamities.

Must Read Articles:

OPEN MARKET SALE SCHEME (OMSS): https://www.iasgyan.in/daily-current-affairs/open-market-sale-scheme-omss

PRICE SUPPORT SCHEME: https://www.iasgyan.in/daily-current-affairs/price-support-scheme

https://epaper.thehindu.com/ccidist-ws/th/th_delhi/issues/47118/OPS/G7BBJKJT1.1+GERBJM7FV.1.html

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