Context:
A Parliamentary Standing Committee has flagged consistently low procurement of rice and wheat compared to estimates, raising concerns about food security and MSP effectiveness.
Key Highlights:
- Data & Trends
- Procurement since 2022-23 has been below 30% of total production.
- Wheat procurement:
- 76.71% (2023-24)
- 71.35% (2024-25)
- 87.29% (2025-26) (of estimates)
- Significant shortfalls in states like Andhra Pradesh, Karnataka, Punjab.
- Governance Concerns
- Panel urged improved planning and coordination between Centre and States.
- Need to revise procurement estimation methodologies.
- Factors Behind Low Procurement
- Market price vs MSP mismatch.
- Private traders offering better prices.
- Variations in production and demand-supply dynamics.
- Institutional Mechanisms
- Procurement ensures buffer stock maintenance.
- Supports Public Distribution System (PDS) and food security.
Relevant Prelims Points:
- Minimum Support Price (MSP): Price guaranteed to farmers by government.
- Food Corporation of India (FCI): Key agency for procurement and storage.
- Public Distribution System (PDS): Distributes subsidized food grains.
- Buffer Stocks: Maintained for food security and price stabilization.
Relevant Mains Points:
- Agricultural Policy Challenges:
- Inefficiencies in procurement system affect farmer incomes.
- Regional disparities in procurement.
- Food Security Implications:
- Low procurement impacts PDS and welfare schemes.
- Risk to buffer stock adequacy.
- Economic Concerns:
- Rising subsidy burden with inefficient procurement.
- Market distortions due to MSP policies.
- Federal Issues:
- Need for better Centre-State coordination.
- Way Forward
- Improve real-time data monitoring of production and arrivals.
- Strengthen decentralized procurement systems.
- Align MSP with market realities.
- Encourage crop diversification beyond rice and wheat.
UPSC Relevance:
- GS 3: Economy, Agriculture, Food Security
- GS 2: Governance, Policy Implementation