The decentralised procurement scheme of the Government of India has the following objectives:
1. To reduce the Transportation costs
2. To pass on the subsidy burden of the central government to state governments
3. To cover more farmers under the Minimum Support Prices scheme
4. To enable making food grains available as per local tastes
Which among the above statements is / are correct?

Answer: [C] Only 1, 3 & 4

Kindly note that the decentralised procurement scheme of the Government of India is in operation since 1997. Under this scheme, the designated States procure, store and also issue food grains as per allotments indicated by the Central Government under TPDS. The difference between the economic cost of the State Governments and the Central Issue Price is passed on to the State Governments as subsidy. This implies that weather centralized or decentralized, it does not reduce the subsidy burden of the central government, neither it passes on the subsidy burden to states. Under this scheme, the designated states, procure, store, and issue food grains under the TPDS and welfare schemes of the Government of India. The difference between the economic cost fixed for the state and the CIP is passed on to the state government as subsidy. The decentralized system of procurement has the objectives of covering more farmers under MSP operations, improving efficiency of the PDS, providing food grains varieties suited to local tastes, and reducing transportation costs.

This question is a part of GKToday's Integrated IAS General Studies Module