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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)

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)

Financialexpress

 

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.

Directive:

AnalyzeWhen 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:

Introduction: 

In short explain the role played by CACP to handle market inefficiencies.

Body:

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.

Conclusion:

Conclude with significance of such policies and need for a balanced approach.