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Himanshu Kulshreshtha
Himanshu KulshreshthaElite Author
Asked: March 18, 20242024-03-18T14:57:32+05:30 2024-03-18T14:57:32+05:30In: Agriculture Policy

What are the important guidelines for the decentralized procurement scheme of foodgrains.

What are the key rules governing the decentralized foodgrain purchase system?

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    1. Himanshu Kulshreshtha Elite Author
      2024-03-18T14:57:54+05:30Added an answer on March 18, 2024 at 2:57 pm

      The decentralized procurement scheme of food grains is a crucial component of India's public distribution system (PDS) aimed at ensuring food security and stabilizing prices for consumers while providing support to farmers. The scheme involves the procurement of food grains, primarily wheat and rice, directly from farmers by government agencies at designated procurement centers located in various states. Here are some important guidelines for the decentralized procurement scheme of food grains:

      1. Minimum Support Price (MSP):

        • Under the decentralized procurement scheme, the government announces Minimum Support Prices (MSPs) for various crops, including wheat and rice, to provide price support to farmers and incentivize production.
        • The MSP serves as a floor price at which government agencies procure food grains from farmers during the procurement season.
      2. Designated Procurement Centers:

        • Procurement of food grains is conducted at designated procurement centers established by government agencies, such as the Food Corporation of India (FCI), state agencies, or designated procurement agencies.
        • These centers are typically located in rural areas close to major agricultural production regions to facilitate easy access for farmers.
      3. Procurement Period:

        • The procurement period for different crops is determined based on the harvesting seasons and crop cycles in different regions.
        • Government agencies announce the start and end dates of the procurement season for each crop well in advance to inform farmers.
      4. Quality Specifications:

        • Food grains procured under the decentralized procurement scheme must meet specified quality standards set by procurement agencies.
        • Quality parameters include moisture content, purity, cleanliness, and adherence to grade specifications for different crop varieties.
      5. Transparent Procurement Process:

        • The procurement process is conducted transparently to ensure fairness and accountability.
        • Procurement agencies provide clear guidelines and procedures for farmers to register, weigh, and sell their produce at procurement centers.
        • Farmers are issued procurement receipts and payment is made directly to their bank accounts or through other electronic modes.
      6. Price Payment:

        • Farmers are paid the MSP or the agreed procurement price for their food grains at the time of sale.
        • Payment is made promptly to ensure timely remuneration for farmers and maintain their confidence in the procurement system.
      7. Market Intervention:

        • The decentralized procurement scheme serves as a form of market intervention by the government to stabilize prices and protect farmers from price fluctuations.
        • Procurement agencies purchase surplus food grains from farmers during bumper harvests to prevent distress sale and support market stability.
      8. Storage and Management:

        • Procured food grains are stored in designated warehouses or godowns equipped with proper storage facilities to prevent spoilage and maintain quality.
        • Storage and management of food grains are undertaken by government agencies with adherence to food safety and quality standards.
      9. Transportation and Logistics:

        • Government agencies arrange for transportation and logistics to move procured food grains from procurement centers to storage facilities and distribution points.
        • Efficient transportation and logistics ensure timely delivery and minimize post-harvest losses.

      In summary, the decentralized procurement scheme of food grains operates under well-defined guidelines to facilitate fair, transparent, and efficient procurement of crops directly from farmers. By providing price support, ensuring quality standards, and promoting transparency, the scheme plays a vital role in supporting agricultural livelihoods, ensuring food security, and stabilizing prices in India's agricultural markets.

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