← 1 November 2026's Current Affairs · Economy GA Prelims ★★★★★ Mains ★★★☆☆
Centre doubles weekly wheat auction quantity amid price rise
Why in News?
Wheat auctions doubled to cool prices: the OMSS route and the FCI role Prelims tests
Weekly wheat auction quantity doubled to ease prices.
Why it matters: asked in UPSC 2004; factual, Prelims-type
What you need to know
2 min read
Amid a rise in wheat prices, the Government of India doubled the quantity of wheat it offers in its weekly auctions.
Such market sales are made from central stocks under the Open Market Sale Scheme run by the Food Corporation of India to cool prices.
Sources: Topper IAS editorial (PIB / The Hindu / Indian Express)
Key facts
Remember these
- The Centre doubled the quantity of wheat offered in its weekly auctions amid a rise in wheat prices.
- Sales are made from central stocks under the Open Market Sale Scheme (OMSS).
- The Food Corporation of India (FCI) runs the OMSS auctions to cool market prices.
- OMSS releases central-pool foodgrain (wheat, rice) into the open market to increase supply.
- Syllabus link: GS3 food security and agricultural marketing.
Prelims · Mains
How the exam will ask it
Prelims
- The Open Market Sale Scheme (Domestic) is implemented by the Food Corporation of India to sell central-pool wheat and rice in the open market.
- OMSS sales are a supply-side measure intended to moderate foodgrain prices, not a procurement operation.
- Releasing more stock in auctions increases market supply and generally puts downward pressure on prices.
Mains
GS3 (food security, agricultural marketing): rising wheat prices expose the tension between building buffer stocks and keeping foodgrains affordable. OMSS auctions by FCI release central-pool stock to add supply and cool prices, but they must be balanced against buffer-norm needs and PDS commitments. The way forward is better stock management, timely and predictable releases, and improved price monitoring and storage.
PYQ connection
A question UPSC has already asked on this
Consider the following statements:
- Regarding the procurement of food-grains, Government of India follows a procurement target rather than an open-ended procurement policy.
- Government of India announces minimum support prices only for cereals.
- For distribution under Targeted Public Distribution System (TPDS), wheat and rice are issued by the Government of India at uniform central issue prices to the States/Union Territories.
Which of the statements given above is/are correct?
- 1 and 2
- 2 only
- 1 and 3
- 3 only
Show answer
Answer: D
Why this matters: today's issue is directly connected to a concept UPSC has already tested. Read the story with this question in mind.
Practise this PYQ →Quick recall
Answer before you reveal
The Centre doubled its weekly wheat auction quantity amid a price rise. Open Market Sale Scheme (Domestic) auctions of central foodgrain stocks are conducted by which agency?
- NAFED
- Central Warehousing Corporation
- State Trading Corporation
- Food Corporation of India
Show answer
Answer: D — Correct: Food Corporation of India — FCI sells wheat and rice from the central pool through OMSS to moderate prices. • NAFED — wrong: NAFED procures pulses and oilseeds under price support but does not run central-pool wheat auctions. • Central Warehousing Corporation — wrong: The Central Warehousing Corporation stores grain but does not sell it under OMSS. • State Trading Corporation — wrong: The State Trading Corporation deals in trade of commodities, not central-pool OMSS sales.
Convert this topic into marks
Today's 10-MCQ test · instant analysis · Powered by AdaptIQ