FCI not to consider request by States for more foodgrains under open market scheme
- Karnataka and Tamil Nadu criticised the Union government’s decision to restrict the supply of foodgrains through the Open Market Sale Scheme.
- FCI clears, the Centre’s priority was to curb inflation.
Food Corporation of India (FCI)
- FCI is a statutory body set up in 1965 under the Food Corporations Act 1964.
- It works under the Department of Food & Public Distribution, Ministry of Consumer Affairs, Food and Public Distribution.
- It has the primary duty to undertake purchase, store, move/transport, distribute and sell food grains and other foodstuffs.
- It was established against the backdrop of a major shortage of grains, especially wheat.
Objectives of FCI
- To provide remunerative prices to farmers.
- To ensure availability, accessibility and affordability of food grains to all people at all times
- Ensuring food security of the nation by maintaining buffer stocks of food grains.
- Distribution of food grains throughout the country for the Public Distribution System.
Open Market Sale Scheme
- FCI sells surplus stocks at predetermined prices through e-auction in the open market from time to time to enhance the supply of food grains.
- Purpose:
- To dispose off surplus stocks of food grains held by FCI
- To regulate the prices in the open market.
- Process of sale
- FCI conducts weekly auctions for the OMSS on the National Commodity and Derivatives Exchange Limited (NCDEX) platform.
National Commodities and Derivatives Exchange (NCDEX)
- NCDEX is an Indian online commodities exchange that specialises in agricultural commodities.
- It is a public limited company incorporated under the Companies Act of 1956
- It is governed by an independent board of directors with no ties to the agricultural industry.
Prelims Takeaway
- Food Corporation of India
- Open Market Sale Scheme
- National Commodity and Derivatives Exchange Limited