Open Market Sale Scheme (OMSS)

Why in News?

• Recently, The Food Corporation of India (FCI) will off load 30 LMT wheat from the Central pool stock to the market through various routes under the Open Market Sale Scheme (Domestic).

Highlights

• FCI sells surplus stocks of wheat and rice at predetermined prices through e-auction in the open market from time to time to enhance the supply of food grains.
• The purpose of OMSS Is to dispose of surplus stocks of wheat and rice held by FCI, 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 is a commodity exchange platform in India that provides a platform for trading in various agricultural and other commodities
• The FCI Is a government-owned corporation that manages the food security system in India.
• It was established in 1965 under the Food Corporation’s Act 1964 with the objective of ensuring adequate availability of food grains throughout the country, and to maintain price stability in the market.
• The FCI also maintains buffer stocks of food grains to ensure food security during times of scarcity or crisis.
• The FCI is also responsible for distributing foodgrains throughout the country for public distribution system.
• FCI also conducts e-auction as one of the methods to dispose of its surplus food grains.