New Enroll here to Join NaBFID Analyst Into Class on May 6

    Question

    What is Open Market Sale Scheme

    (OMSS)?
    A The Food Corporation of India (FCI) sells surplus stocks of wheat and rice at pre-determined prices through e-auction in the open market. Correct Answer Incorrect Answer
    B To decrease the supply of food grains, especially wheat, during the lean season and thereby moderate the open market prices, specially in the deficit regions. Correct Answer Incorrect Answer
    C The reserve price is variable by the government. In the tenders floated by the FCI , the bidders cannot quote less than the reserve price. Correct Answer Incorrect Answer
    D None Correct Answer Incorrect Answer
    E All Correct Answer Incorrect Answer

    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.

    Practice Next

    Relevant for Exams: