Limits of expansion: On the controversy over the Open Market Sale Scheme

Governments must focus on effective implementation of existing food security schemes

The National Conference of Food Ministers failed to resolve the issue of the discontinuance of rice

and wheat sales to States under the Open Market Sale Scheme (OMSS) in view of the Centre’s

restrictions. The meet was to discuss topics such as an action plan for the procurement of coarse

grains and a strengthened focus on food and nutritional security. However, given the row in

Karnataka over the Centre’s stringent restrictions on the OMSS, it was expected that there would be a

solution. But the Centre was in no mood to oblige the States, which use the OMSS to cover a

considerable portion of their foodgrain requirements. Apart from Karnataka, Tamil Nadu and

Rajasthan asked that the restrictions be removed. Rejecting the plea, Union Food Minister Piyush

Goyal reiterated the Centre’s position of taking care of the interests of those outside the scope of the

National Food Security Act (NFSA). Though it is indisputable that he has to look after the non-NFSA

category of beneficiaries, the States’ plea too considers the needs of sections of the non-NFSA

population, as those covered under the Act get their entitlements under the Centre’s monthly

allocation of foodgrains. Besides, if States are forced to tap the open market, rice and wheat prices

are bound to go up. This will defeat the Centre’s objective behind restrictions on quantity sold

through OMSS, i.e., keeping prices under control. Finding middle ground would have addressed

everyone’s concerns, at least partially.

The controversy over the OMSS should have sent out the message to States that it would not be wise

to rely on the Centre or its agencies when it comes to implementing State schemes in the food sector.

They must identify their own sources, and in a cost-effective manner. After the U-turn by the Food

Corporation of India in providing additional foodgrains for the Anna Bhagya 2.0 programme, the

Congress government in Karnataka could not find an equivalent supplier, cost being a key reason.

States should introspect whether it is feasible to double the size of entitlements, as Karnataka had

sought to, from 5 kg to 10 kg. Though Karnataka has found a way out — it will now transfer cash for

the proposed additional quantity — the episode brings into focus its ill-planned attempt to replicate,

in the area of food security, a scheme of the Union government, which has a bigger resource base.

With Mr. Goyal sounding caution on the El Niño factor in foodgrain production and procurement, the

Centre and the States should focus more on making the Public Distribution System foolproof than on

expanding existing schemes.

Summary of the Editorial

1. The National Conference of Food Ministers failed to resolve the issue of discontinuance of rice

and wheat sales under the Open Market Sale Scheme (OMSS).

2. The central government has imposed restrictions on the OMSS that have caused friction with

state governments, particularly Karnataka.

3. States such as Karnataka, Tamil Nadu, and Rajasthan want the restrictions on OMSS to be

removed as they rely on it for a significant part of their foodgrain requirements.

4. Union Food Minister Piyush Goyal reiterated that the Centre aims to take care of the interests

of those not covered by the National Food Security Act (NFSA).

5. The states' plea argues for the non-NFSA population, as those under the Act receive their

share from the Centre's monthly allocation.

6. If states have to source food grains from the open market, prices for rice and wheat are likely

to rise.

7. The OMSS controversy should signal to states that they need to find their own cost-effective

sources for implementing state food schemes.

8. Karnataka's government failed to find an equivalent supplier after the Food Corporation of

India backtracked on providing extra foodgrains for the Anna Bhagya 2.0 programme.

9. States need to reconsider whether it is feasible to double entitlements, as attempted by

Karnataka.

10. Karnataka has now decided to transfer cash for the proposed additional quantity, highlighting

its poorly planned attempt to mimic a Union government scheme.

11. The Union government has greater resources than individual states, which can cause issues

when states attempt to replicate central schemes.

12. Union Food Minister Piyush Goyal also raised concerns about the potential impact of El Niño

on foodgrain production and procurement.

13. Both central and state governments should focus more on making the Public Distribution

System (PDS) foolproof.

14. The editorial implies that the current focus should be on improving the implementation of

existing food security schemes rather than expanding them.

15. This is especially crucial given the potential risks to foodgrain production and the need to

ensure food security for all populations, not just those covered by the NFSA