Topic: Issues related to direct and indirect farm subsidies and minimum support prices; Public Distribution System- objectives, functioning, limitations, revamping; issues of buffer stocks and food security; Technology missions; economics of animal-rearing.
7) Do you think reviewing open-ended procurement and shifting towards private procurement to correct market inefficiencies is worth serious consideration as suggested by CACP? Analyse. (250 words)
Why this question:
CACP, in its latest report for rabi season, has batted for direct procurement by private players, as envisaged under the Private Procurement Stockist Scheme. Thus the question.
Key demand of the question:
One has to provide for a detailed analysis of the benefits of using open-ended procurement and shifting towards private procurement to correct market inefficiencies.
Analyze – When asked to analyse, you have to examine methodically the structure or nature of the topic by separating it into component parts and present them as a whole in a summary.
Structure of the answer:
In short explain the role played by CACP to handle market inefficiencies.
The article very well explains why the govt. should opt for an open-ended grain procurement policy.
Discuss the role played by the policy of MSP and the DBT experiment etc.
Analyse in what way the open-ended grain procurement policy may benefit the agriculture sector and discuss the associated challenges.
Conclude with significance of such policies and need for a balanced approach.