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?
- 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.
- 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.
- 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?
- On 1 July 2025, the Central Pool held rice stocks far in excess of the buffer norm prescribed for that date.
- 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?
- The Central Pool held rice well beyond what the stocking norm required, leaving room for open-market offloading.
- Open-market rice prices during this period must have been below the OMSS (D) reserve price.
- Bulk buyers purchased more rice at OMSS (D) prices in this period than in the corresponding period a year earlier.
- 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?
- 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.
- 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.
- Maize, like FCI rice, is an approved feedstock for ethanol under the Ethanol Blending Programme.
- 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