07-10-2023 CA

 

What is an Open Market Sale Scheme (OMSS)?

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.

What is the Food Corporation of India?

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.

UPSC Civil Services Examination, Previous Year Question (PYQ)

Prelims

Q1. With reference to the provisions made under the National Food Security Act, 2013, consider the following statements: (2018)

 

The families coming under the category of ‘below poverty line (BPL)’ only are eligible to receive subsidised food grains.

The eldest woman in a household, of age 18 years or above, shall be the head of the household for the purpose of issuance of a ration card.

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?

 

(a) 1 and 2 only

(b) 2 only

(c) 1 and 3 only

(d) 3 only

 

Ans: (b)

 

Mains

Q.1 In what way could replacement of price subsidy with Direct Benefit Transfer (DBT) change the scenario of subsidies in India? Discuss. (2015)