Question
What is Open Market Sale Scheme
(OMSS)?Solution
Under OMSS, the Food Corporation of India (FCI) sells surplus stocks of wheat and rice at pre-determined prices through e-auction in the open market. • Objective: To enhance the supply of food grains, especially wheat, during the lean season and thereby moderate the open market prices, specially 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). • The State Governments/ Union Territory Administrations are also allowed to participate in the e-auction, if they require wheat and rice outside the Targeted Public Distribution Scheme (TPDS) and Other Welfare Schemes (OWS). • The reserve price is fixed by the government. In the tenders floated by the FCI, the bidders cannot quote less than the reserve price.
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