UPSC Prelims Practice Questions — Government doubles OMSS (D) rice sale target from 25 LMT to 50 LMT for 2026-27; 25 LMT already sold through e-auctions up to 31 October 2026

Q1. With reference to the legal framework for controlling private stocks of foodgrains in India, consider the following statements: Which of the statements given above is/are correct?

  1. The Essential Commodities Act, 1955 empowers the Central Government to regulate, by order, the storage and distribution of an essential commodity, which includes prescribing limits on stocks held by traders.
  2. The Central Government may direct that its order-making power under the Essential Commodities Act, 1955 shall also be exercisable by a State Government, subject to conditions it specifies.
  3. Since 'trade and commerce in foodstuffs' is a Concurrent List subject, both Parliament and the State Legislatures can make laws on it.
  • A. 1 and 2 only
  • B. 1 only
  • C. 2 and 3 only
  • D. 1, 2 and 3

Q2. Consider the following statements: Which of the following is correct in respect of the above statements?

  1. On 1 July 2025, the Central Pool held rice stocks far in excess of the buffer norm prescribed for that date.
  2. Buffer norms for the Central Pool are prescribed separately for different quarters of the year rather than as one uniform annual figure.
  • A. Both Statement-I and Statement-II are correct and Statement-II explains Statement-I
  • B. Both Statement-I and Statement-II are correct, but Statement-II does not explain Statement-I
  • C. Statement-I is correct, but Statement-II is incorrect
  • D. Statement-I is incorrect, but Statement-II is correct

Q3. Consider the following facts: As on 1 July 2026, the Central Pool held about 397 LMT of rice against a stocking norm of 135.40 LMT for that date. Up to 31 October 2026, 25 LMT of rice had been sold through OMSS (D) e-auctions, against 11 LMT in the same period of the previous year. The government then raised the 2026-27 OMSS (D) rice sale target from 25 LMT to 50 LMT. Which of the following inferences can be drawn from the above?

  1. The Central Pool held rice well beyond what the stocking norm required, leaving room for open-market offloading.
  2. Open-market rice prices during this period must have been below the OMSS (D) reserve price.
  3. Bulk buyers purchased more rice at OMSS (D) prices in this period than in the corresponding period a year earlier.
  4. Selling the entire revised target would not, by itself, bring the Central Pool rice stock below the 1 July norm.
  • A. 1, 3 and 4 only
  • B. 3 and 4 only
  • C. 1 and 2 only
  • D. 1, 2, 3 and 4

Q4. Consider the following assertion: Supplying FCI rice to ethanol distilleries at a concessional reserve price carries a risk that subsidised grain may leak back into the food market. Which of the following statements support the above assertion?

  1. Rice for distilleries has been priced below the reserve price for private bulk buyers, so diverted grain could be resold in the food market at a margin.
  2. Cases of diversion of FCI rice earmarked for ethanol production were reported in Parliament in 2026, after which further allocation to the distilleries concerned was stopped.
  3. Maize, like FCI rice, is an approved feedstock for ethanol under the Ethanol Blending Programme.
  4. Rice allocation to distilleries is linked to the quantity of ethanol in their supply contracts with Oil Marketing Companies.
  • A. 1, 2 and 4 only
  • B. 1 and 2 only
  • C. 1 and 4 only
  • D. 3 and 4 only