Open Market Sale Scheme

Open Market Sale Scheme (OMSS) refers to selling of foodgrains by Government / Government agencies at predetermined prices in the open market from time to time to enhance the supply of grains especially during the lean season and thereby to moderate the general open market prices especially in the deficit regions.

In addition to maintaining buffer stocks and making a provision for meeting the requirement of the Targeted Public Distribution Scheme and Other Welfare Schemes (OWS), Food Corporation of India (FCI) on the instructions from the Government, sells wheat and rice in the open market from time to time to enhance the supply of wheat and rice especially during the lean season and to moderate the open market prices especially in the deficit regions. For transparency in operations, the Corporation has switched over to e- auction for sale under Open Market Sale Scheme (Domestic). The FCI conducts a weekly auction to conduct this scheme in the open market using the platform of commodity exchange NCDEX (National Commodity and Derivatives Exchange Limited). The State Governments/ Union Territory Administrations are also allowed to participate in the e-auction, if they require wheat and rice outside TPDS & OWS.

The present form of OMSS comprises 3 schemes as under:

(i) Sale of wheat to bulk consumers/private traders through e-auction.

(ii) Sale of wheat to bulk consumers/private traders through e-auction by dedicated movement.

(iii) Sale of Raw Rice Grade ‘A’ to bulk consumers/private traders through e-auction.

FCI was set up in 1965 (under the Food Corporation Act, 1964) against the backdrop of major shortage of grains, especially wheat, in the country. Agricultural Prices Commission was also created in 1965 to recommend remunerative prices to farmers, and FCI was mandated with three basic objectives: to provide effective price support to farmers; to procure and supply grains to PDS for distributing subsidized staples to economically vulnerable sections of society; and keep a strategic reserve to stabilize markets for basic foodgrains.