How are crops procured? – UPSC Prelims

How are crops procured?
  • Objective:
    • The Government policy of procurement of Food Grains has broad objectives of ensuring MSP to the farmers and availability of food grains to the weaker sections at affordable prices.
    • It also ensures effective market intervention thereby keeping the prices under check and also adding to the overall food security of the country.
    • The procurement under Price Support is taken up mainly to ensure remunerative prices to the farmers for their produce which works as an incentive for achieving better production.
  • Nodal Agency: Food Corporation of India, the nodal central agency of the Government of India, along with other State Agencies undertakes procurement of wheat and paddy under a price support scheme.
  • Coarse grains are procured by State Government Agencies for Central Pool as per the direction issued by the Government of India from time to time.
  • Role of CACP: Before the harvest during each Rabi / Kharif Crop season, the Government of India announces the Minimum Support Prices (MSP) for procurement on the basis of the recommendation of the Commission of Agricultural Costs and Prices (CACP).
  • Role of State Governments: To facilitate procurement of food grains, FCI and various State Agencies in consultation with the State Government establish a large number of purchase centres at various mandis.
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