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Bihar Paddy Procurement Target Revision Request to Centre

Source:timesofindia-indiatimes ↗

Why It Matters

Crucial for understanding agricultural economics, food procurement policies, Centre-State coordination, and farmers' welfare in Bihar for BPSC aspirants.

Summary

The Bihar government has formally requested the central government to raise the state's paddy procurement target to 50 lakh metric tonnes (MT) to better support local farmers and guarantee remunerative returns through the Minimum Support Price (MSP) mechanism.

Key Points

  • Bihar government has urged the Centre to increase the paddy procurement target to 50 lakh metric tonnes (MT).
  • The move aims to ensure that farmers receive adequate Minimum Support Price (MSP) benefits and prevent distress selling.
  • Paddy procurement is a critical component of food security, agricultural marketing, and state-centre economic coordination in Bihar.

Important Terms

Minimum Support Price (MSP)

A government-set guaranteed price at which food grains are purchased directly from farmers, protecting them from market price volatility and ensuring assured financial returns.

UPSC context

BPSC General Studies Paper II (Indian Economy and Agriculture) — tests knowledge of agricultural pricing policies, farm incomes, and food security mechanisms.

Source
Food Corporation of India (FCI)

A premier statutory body under the Ministry of Consumer Affairs, Food and Public Distribution responsible for procuring food grains, maintaining buffer stocks, and ensuring nationwide food security.

UPSC context

BPSC General Studies Paper II (Economy and Public Distribution) — tests institutional frameworks governing food procurement and the central pool management.

Source
Decentralized Procurement Scheme (DCP)

A procurement model where state governments directly procure food grains from farmers, store them, and distribute them under the Public Distribution System (PDS), with financial support from the Centre.

UPSC context

BPSC General Studies Paper II (Bihar Economy and Administration) — crucial for understanding state-level administrative implementation of food security policies in Bihar.

Source

Static Concepts Connected

Economy Agriculture Public Distribution

What is the institutional mechanism and mandate for Minimum Support Prices in India?

  • CACP Mandate: Commission for Agricultural Costs and Prices (CACP) recommends MSPs for 22 mandated crops plus Fair and Remunerative Price (FRP) for sugarcane.
  • Final Approval: Cabinet Committee on Economic Affairs (CCEA) chaired by the Prime Minister takes the final decision on announcing MSPs.
  • Procurement Agencies: Procurement is primarily undertaken by central agencies like the Food Corporation of India (FCI) alongside state-level designated agencies.

Cross-Topic Patterns

  • Paddy Procurement and NFSA Food Security Dynamics

    Paddy procurement targets intersect with the National Food Security Act (NFSA) mandates, balancing decentralized procurement models with central buffer stock obligations.

  • APMC Repeal and MSP Implementation Realities

    Bihar's agricultural marketing challenges highlight structural shifts following the 2006 abolition of the Agricultural Produce Market Committee (APMC) act.

Expect statement-based questions on decentralized procurement targets, NFSA rice conversion ratios, and MSP mechanics in Bihar.

Linked PYQs · 2

Linked PYQs · 2

  • 2023BPSC_PRELIMSGS1

    What is the policy measure adopted by the Government of India to improve the system of agricultural marketing?

  • 2019BPSC_PRELIMSGS1

    Who determines the minimum support price in India?