Open Market Sale Scheme (Domestic) Policy

Open Market Sale Scheme (Domestic) Policy

The Ministry of Consumer Affairs, Food & Public Distribution has announced significant updates to the Open Market Sale Scheme (Domestic) (OMSS(D)) policy for 2024-25, aimed at strengthening food security and supporting ethanol production in India.

What is the OMSS(D) Policy?
The OMSS allows the sale of surplus food grains, such as wheat and rice, from the central pool managed by the Food Corporation of India (FCI). These grains are sold to dealers, bulk consumers, and retail chains via e-auctions at prices set by the Ministry. The scheme plays a key role in stabilizing food grain prices, curbing inflation, and meeting the needs of the Targeted Public Distribution System (TPDS) and other welfare programs.

Eligible Buyers

• Wheat is sold to processors, atta chakis, and flour millers.
• Rice is sold to traders.
• States can also purchase grains directly through the OMSS, beyond their National Food Security Act (NFSA) allocation, without entering auctions.

Auction Process

• Bidders can participate in e-auctions with minimum bids of 10 metric tons (MT) and maximum bids of 100 MT for wheat, and 10 MT to 1000 MT for rice.

Revisions to OMSS(D) Policy
The government has reduced the reserve price of rice under OMSS by Rs 550 to Rs 2,250 per quintal for states and ethanol producers. This adjustment aims to stimulate sales, enhance ethanol production, and bolster food security efforts.

Food Corporation of India (FCI)
Establishment: The FCI was created under the Food Corporation Act, 1964, as a statutory body responsible for managing the country's food security.

Key Functions:

• National Food Security Act (NFSA): FCI procures grains to meet NFSA requirements and distributes them at subsidized prices to vulnerable populations.
• Public Distribution System (PDS): FCI delivers food grains to state governments for distribution through Fair Price Shops.
• Market Intervention: The FCI stabilizes food prices and addresses inflation through grain procurement and the OMSS.
• Farmer Support: FCI ensures Minimum Support Prices (MSP) to protect farmers' interests.

Headquarters: New Delhi, with a nationwide operational network across Zonal, Regional, and District offices.

FCI Reforms:

• Direct Benefit Transfer (DBT): Implemented the “One Nation, One MSP” policy to ensure transparent payments to farmers.
• Digital Procurement: Introduced computerized food grain procurement for speed and transparency.
• Modernized Storage: Shifted from traditional storage to scientifically managed depots and silos.
• Integrated Supply Chain: Streamlined through the ANNA DARPAN portal.
• AI-Driven Grain Analysis: Implemented Automatic Grain Analyzers to ensure transparency in procurement.
• Digital Quality Control: Integrated quality control labs with centralized monitoring dashboards for real-time updates.
• Loss Reduction: Reduced storage losses from 0.17% in 2013-14 to a net gain of 0.22% by 2023-24, and cut transit losses from 0.46% to 0.16%.
• Decentralized Procurement: Increased state participation in rice and wheat procurement.

These reforms and policy revisions demonstrate the government's commitment to improving food distribution, enhancing efficiency, and supporting agricultural sustainability.

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