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In the recent times there has been uproar to review the open ended procurement policy, Discuss what the policy is about? And explain how does the government decide minimum support price for the farmers?

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. In the recent times there has been uproar to review the open ended procurement policy, Discuss what the policy is about? And explain how does the government decide minimum support price for the farmers? (250 words)

Reference: The Hindu

Why this question:

As the debate surrounding the review of open-ended procurement policy has started gaining momentum, following a recommendation by the Commission for Agricultural Costs and Price (CACP) to the Centre government, several farmers and farmers’ bodies in Punjab and Haryana have hinted that any move To stop or limit it would be opposed and resisted.

Key demand of the question:

The answer must discuss in detail the concept of open ended procurement policy and the concerns associated with it, also explain how the government decides upon the MSP.

Directive:

Discuss – This is an all-encompassing directive – you have to debate on paper by going through the details of the issues concerned by examining each one of them. You have to give reasons for both for and against arguments.

Explain – Clarify the topic by giving a detailed account as to how and why it occurred, or what is the particular context. You must be defining key terms where ever appropriate, and substantiate with relevant associated facts.

Structure of the answer:

Introduction:

Briefly explain what open ended procurement policy is.

Body:

  • Under open-ended procurement policy, government agencies buy whatever quantity of wheat and rice is brought by farmers into the mandis (wholesale markets), within the stipulated time and which conforms to fixed quality Parameters for Central pool.
  • Then move onto explain the procedure of forming MSP; CACP submits its recommendations to the government in the form of Price Policy Reports every year, separately for five groups of commodities namely Kharif crops, Rabi crops, Sugarcane, Raw Jute and Copra.
  • Discuss the detailed procedure.
  • Explain the challenges involved and suggest solutions to it.

Conclusion:

Conclude with the need to have a balanced approach.

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