Open Market Sales Scheme Overview
FCI releases wheat and rice at predetermined prices in the open market from time to time to enhance the supply of wheat and rice especially during the lean season to moderate the open market prices.
Presently FCI is undertaking sale of wheat and Raw Rice Grade ‘A’ to bulk consumers/private traders through e-auction.
The State Governments/ Union Territory Administrations are also allowed to participate in the e-auction, if they require wheat and rice outside TPDS & OWS, without empanelment and submission of EMD. State Governments have to register for e-auction with NSPOT through FCI Regional Office and obtain the user id and password for participation in the bids. The States are allowed to participate as a single unit.
The minimum and maximum quantity of wheat that a bulk consumer/trader can bid in an e-auction conducted by a Region for a State/UT is 100 MT and 5000 MT respectively. The limits for States per e-auction has been fixed at 100 MT to 40000 MT per state.
The minimum and maximum quantity of Raw Rice Grade-A that a bulk consumer/trader can bid in an e-auction conducted by a Region for a State/UT is 50 MT and 3500 MT respectively. The limits for States per e-auction shall be fixed at 50 MT to 15,000 MT per state.
The present form of OMSS(D) comprises of 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.
(i) Wheat: The current reserve price of wheat for Punjab, Haryana and Madhya Pradesh has been fixed by the Ministry at Rs. 1640/- per quintal. For depots located outside Punjab, Haryana and Madhya Pradesh, freight/road transport charge upto the concerned depots of FCI, ex Ludhiana is to be added in Rs. 1640/- per quintal.
(i) Raw Rice Grade ‘A’:Rs.2400/- per quintal plus applicable taxes.
In order to increase competition and effectiveness, FCI started e-auction of wheat under Open Market Sale Scheme (Domestic) in August 2014 through M/s NCDEX Spot Exchange Mumbai.
During 2015-16, the Government allowed FCI to offload exess stocks of foodgrains over and above the foodgrains stocking norms for Central Pool at the beginning of each quarter through open sale to Bulk Consumers/Private Traders under OMSS(D) through e-auction. FCI also conducted e-auction of wheat on dedicated movement basis from agencies depots located in Punjab, Haryana and Madhya Pradesh.
During 2016-17(Upto 4th tender of July 2016), a total quantity of 9.92 lakh MT wheat and 0.30 lakh MT of rice has been sold under OMSS (D) comparing to 70.77 lakh MT wheat and 1.11 lakh MT of rice sold under Bulk Buyer Scheme during 2015-16.
Dedicated movement of wheat under OMSS (D) was also started during August 2014 in the State of Punjab, Haryana and Madhya Pradesh. During 2015-16, a total quantity of 26.63 lakh MT i.e. 1005 rakes were approved for dedicated movement comprising of 1.88 lakh MT in Punjab, 1.19 lakh MT in Haryana and 23.56 lakh MT in Madhya Pradesh. During 2016-17, dedicated movement of wheat from Punjab, Haryana and Madhya Pradesh has been started w.e.f. 1st July 2016. A quantity of 0.16 lakh MT has been sold from Punjab upto 4th tender of July 2016.