Which of the following statements is/are correct regarding the Open Market Sale Scheme (OMSS)?
1. Under OMSS, the Food Corporation of India sells surplus central pool food grains in the open market to stabilize prices.
2. OMSS reserve prices are fixed solely by state governments without any alignment to the Minimum Support Price (MSP).

Question

Accepted Answer

A) 1 only — Statement 1 is correct as FCI uses OMSS e-auctions to offload excess stock and cool retail prices. Statement 2 is incorrect because the central government sets OMSS reserve prices, which are closely aligned with the economic cost and the Minimum Support Price (MSP).

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