With reference to the food procurement in India, the Decentralized Procurement (DCP) scheme has been adopted by some state governments. What is / are benefits of such scheme?
1. State governments can procure food grains more suited to the local taste
2. Enhances the efficiency of procurement and distribution
3. Saves procurement costs for government
4. Farmers get extended benefits of Minimum Support Price Scheme
Select the correct option from the codes given below:

Answer: [D] 1, 2, 3 & 4

Economic Survey 5.45

To enhance efficiency of procurement and public distribution and to extend the benefits of MSP to local farmers, the Decentralized Procurement (DCP) scheme has been adopted by some state governments. The central government is urging all state governments to adopt the DCP scheme so that costs of distribution can

be saved and outreach of price support mechanism to the farmers in hitherto weaker areas can be improved.

Other Notes

  1. This scheme was first launched in 1997-98
  2. Under the decentralized procurement scheme, the State Government itself undertakes direct purchase of paddy and wheat and procurement of levy rice on behalf of Government of India. Purchase centres are opened by the State Governments and their agencies as per their requirements.
  3. The State Governments procure, store and distribute foodgrains under TPDS and other welfare schemes. In the event of the total quantity of wheat and rice thus procured falling short of the total allocation made by the Central Government for meeting the requirement of TPDS and other schemes, the Central Government, through FCI, meets the deficit out of the Central Pool stocks.
  4. The Central Government undertakes to meet the entire expenditure incurred by the State Governments on the procurement operations as per the approved costing. The Central Government also monitors the quality of foodgrains procured under the scheme and reviews the arrangements made to ensure that the procurement operations are carried on smoothly.

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