Also: OMSS, OMSS (Domestic), Open Market Sale Scheme (Domestic)
Definition
The Open Market Sale Scheme (Domestic), or OMSS(D), is a mechanism through which the Food Corporation of India sells surplus wheat and rice from central pool stocks in the open market, mainly through e-auctions to traders, flour mills and processors at predetermined reserve prices, to increase supply, cool prices and manage excess stocks.
OMSS operations are guided by the government's buffer norms, which specify minimum stocks of wheat and rice for each quarter to meet PDS needs and emergencies. When stocks run above these norms, the case for open market sales strengthens; when they run close to the norms, as with wheat in 2022–23, the government must balance price control against the need to protect reserves.
The FCI procures far more wheat and rice than it needs for the PDS and welfare schemes in some years, and it is required to maintain buffer stocks for food security. When stocks exceed buffer norms, storage costs and losses mount. When market prices of cereals rise sharply, especially in the lean months before a new harvest, consumers suffer. OMSS addresses both problems: it releases grain from government stocks into the market, adding supply and reducing the pressure on prices, while also reducing excess inventories.
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