The Politics and Economics of Paddy Procurement: A Case Study of the Cauvery Delta
UPSC Relevance
Prelims: Indian Economy (Agriculture, Minimum Support Price (MSP), Procurement of food grains, Food Corporation of India (FCI), Decentralised Procurement (DCP) Scheme, Fair Average Quality (FAQ) norms).
Mains:
General Studies Paper 3 (Economy - Agriculture): "Issues related to direct and indirect farm subsidies and minimum support prices (MSP)"; "Public Distribution System (PDS) - objectives, functioning, limitations, revamping"; "Food processing and related industries in India—scope and significance"; "Storage, transport and marketing of agricultural produce and issues and related constraints."
Key Highlights from the News
Tamil Nadu government requested the central government to increase the moisture content limit for paddy procurement from 17% to 22%.
Delayed paddy harvesting in the Cauvery delta region and rainfall caused the increase in moisture content.
As private traders refuse to buy high-moisture paddy, farmers are completely relying on the government procurement agency (TNCSC).
This issue arises as part of the Decentralised Procurement Scheme (DCP), where states procure paddy for the centre at the central government's fixed Minimum Support Price (MSP).
Other challenges include the inadequacy of Direct Purchase Centres (DPCs) and poor storage infrastructure.
The article suggests involving Farmer Producer Organisations (FPOs) in the procurement process as a solution.
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