Daily Current Affairs : 24-June-2023
Recently, the Centre made the decision to discontinue the sale of rice and wheat from the central pool under the Open Market Sale Scheme (OMSS) to State governments, with the exception of the northeast, hilly states, and regions facing law and order situations and natural calamities. The primary objective behind this move was to control the prices of essential commodities, specifically wheat and rice, in order to safeguard the interests of the people. However, this decision has been met with criticism from states like Karnataka and Tamil Nadu, as state governments allege that it goes against the interests of the poor.
Open Market Sale Scheme (Domestic)
The Open Market Sale Scheme (Domestic) is implemented by the Food Corporation of India (FCI) on the instructions of the government. This scheme involves the sale of surplus stocks of wheat and rice at predetermined prices through e-auctions in the open market. The scheme aims to achieve several objectives, including:
- Enhancing the supply of food grains during lean seasons and in deficit regions.
- Moderating open market prices of essential commodities.
- Offloading excess stocks to prevent wastage and reduce carrying costs.
- Reducing the overall cost burden of maintaining food grain stocks.
Food Corporation of India
The Food Corporation of India (FCI) was established under the Food Corporations Act of 1964 to fulfill various objectives of the Food Policy. These objectives include:
- Implementing effective price support operations to protect the interests of farmers.
- Distributing food grains throughout the country for the public distribution system.
- Maintaining sufficient operational and buffer stocks of food grains to ensure national food security.
Achievements of FCI
Since its establishment, the FCI has played a crucial role in transforming India’s food security system from crisis management to a stable security framework. Some notable achievements of the FCI include:
- Ensuring price stability: By implementing price support operations, the FCI has safeguarded the interests of farmers and ensured stable prices for essential commodities.
- Establishing a distribution network: The FCI’s distribution system has enabled the equitable distribution of food grains across the country, particularly to vulnerable sections of society.
- Ensuring food security: Through the maintenance of operational and buffer stocks, the FCI has contributed to national food security, ensuring an adequate supply of food grains even during times of scarcity or emergencies.
Criticisms and Controversies
Despite the FCI’s achievements, the recent decision to discontinue the sale of rice and wheat under the OMSS has faced criticism. Some of the main criticisms include:
- Adverse impact on the poor: State governments, such as Karnataka and Tamil Nadu, have raised concerns that this decision goes against the interests of the poor. They argue that it may lead to a decrease in the availability of essential commodities at affordable prices.
- Lack of consultation: Critics claim that the decision was made without proper consultation with the concerned state governments, leading to discontent and opposition.
- Regional disparities: The exclusion of certain states from the discontinued sale has raised questions about the fairness and equity of the decision. It has been argued that all states should be treated equally when it comes to ensuring the availability and affordability of essential commodities.
Important Points:
- The Centre has discontinued the sale of rice and wheat from the central pool under the Open Market Sale Scheme (OMSS) to State governments, except for the northeast, hilly states, and regions facing law and order situations and natural calamities.
- The decision aims to control the prices of essential commodities (wheat and rice) in the larger interest of the people.
- Karnataka and Tamil Nadu criticized the decision, alleging that it goes against the interest of the poor.
- The Food Corporation of India (FCI) sells surplus stocks of wheat and rice under the Open Market Sale Scheme (Domestic) through e-auctions to enhance supply during lean seasons and deficit regions, moderate open market prices, offload excess stocks, and reduce carrying costs.
- The FCI was established under the Food Corporations Act 1964 to ensure effective price support operations for farmers, distribution of foodgrains for the public distribution system, and maintenance of operational and buffer stocks for national food security.
- The FCI has played a significant role in transforming India’s crisis management-oriented food security into a stable security system.
- Critics argue that the decision may adversely impact the poor and decrease the availability of essential commodities at affordable prices.
- Concerns have been raised about the lack of consultation with state governments and the fairness and equity of excluding certain states from the discontinued sale.
- The FCI’s achievements include ensuring price stability, establishing a distribution network, and contributing to national food security.
- The controversy surrounding the discontinuation of the OMSS highlights the need to address concerns and ensure the effective achievement of price stability and food security objectives.
Why In News
Recently, in a bid to curb the skyrocketing prices of essential commodities, such as wheat and rice, the Centre has made a significant move by halting the sale of these staples from the central pool under the Open Market Sale Scheme (OMSS) to State governments, with the exception of the northeast, hilly states, and regions grappling with law and order issues and natural disasters. This strategic decision aims to ensure the welfare of the people by regulating the availability and affordability of these vital food items.
MCQs about Open Market Sale Scheme
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What is the main objective of discontinuing the sale of rice and wheat under the Open Market Sale Scheme (OMSS)?
A. To increase the profits of the Food Corporation of India (FCI)
B. To control the prices of essential commodities in the interest of the people
C. To reduce the surplus stocks of rice and wheat
D. To promote exports of rice and wheat to other countries
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Which organization is responsible for implementing the Open Market Sale Scheme (Domestic) in India?
A. Reserve Bank of India (RBI)
B. Indian Council of Agricultural Research (ICAR)
C. Food Corporation of India (FCI)
D. Ministry of Agriculture and Farmers’ Welfare
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What is one of the achievements of the Food Corporation of India (FCI)?
A. Enhancing agricultural productivity
B. Promoting organic farming practices
C. Ensuring price stability for essential commodities
D. Facilitating international trade of food grains
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What criticism has been raised against the decision to discontinue the sale of rice and wheat under the OMSS?
A. The decision benefits only the wealthy population.
B. It decreases the availability of essential commodities for the poor.
C. The decision was made without consultation with state governments.
D. It leads to an increase in the prices of essential commodities.
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