The correct answer is Option 3 In News • The Union Government, after piloting a rice segregation plan in 4 states, is preparing to reduce broken grain content in FCI stock. While speaking on this reform, the Food Secretary highlighted that the government is not currently using OMSS, but is prepared to do so if prices rise, which acts as a deterrent for market speculation. Explanation & Key Takeaways: • Statement I: OMSS is a price stabilization measure under which the FCI sells excess grain stocks—such as rice and wheat—in the open market to regulate supply and control inflationary trends. Hence, Statement I is correct. • Statement II: The article explicitly mentions that the government is not currently selling rice or wheat under OMSS as prices are stable and stocks are adequate, and there is no immediate need to intervene. Hence, Statement II is incorrect. • Statement III: Even in the absence of actual sales, the knowledge that the government can intervene any time through OMSS creates a psychological check in the open market, discouraging price spikes. Hence, Statement III is correct. Related Concepts: • OMSS (Open Market Sale Scheme) is implemented by the Food Corporation of India (FCI) to release food grains at pre-announced prices in the open market. • It helps moderate the open market price of food grains, especially during times of supply-demand imbalance. • OMSS is not linked to MSP targets; it is primarily a buffer stock disposal and price control mechanism. • OMSS operations are seasonal and vary depending on stock levels and inflation trends. • Under NFSA, FCI maintains buffer stocks, and OMSS serves as a secondary distribution channel to offload excess.