Open market sale
Also called: OMSS, Open Market Sale Scheme · Topic: Agricultural Marketing, MSP, Buffer Stocks and PDS · NCERT: Beyond NCERT
Meaning
Under an open market sale (OMSS, Open Market Sale Scheme), the government sells extra wheat and rice from the central pool on the open market at fixed prices. The central pool is the grain stock held by the Centre for the PDS and for emergencies. OMSS does two jobs. It adds supply, which cools food prices. It also cuts stocks that are well above the buffer norms, which lowers storage and interest costs.
Example
In 2023-24, surplus central-pool wheat and rice was sold as Bharat Atta and Bharat Rice to calm rising cereal prices.
Don't confuse with
- Public distribution system (PDS): the PDS gives grain only to entitled households, through fair price shops, at subsidised prices (free since 2023). OMSS sells to buyers in the open market, such as traders, processors or consumers, at set prices.