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

Governments must focus on effective implementation of existing food security schemes 

Updated - July 07, 2023 01:36 pm IST

Published - July 07, 2023 12:10 am IST

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.

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