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Food Procurement and Distribution – PDS & NFSA, Shanta Kumar Committee, FCI restructuring, Buffer stock, etc.

Rice & Wheat Procurement Shortfall  

Why in the News

  • A Parliamentary Standing Committee headed by Kanimozhi Karunanidhi raised concerns over consistently low procurement of rice and wheat compared to estimates. 

Key Findings

1. Persistent Gap

  • Since 2022-23: Procurement < 30% of total production
  • Wheat procurement (as % of estimates):
    • 2023-24: 76.7%
    • 2024-25: 71.3%
    • 2025-26: 87.3%

2. State-Level Shortfalls

  • Rice (Kharif 2024-25): Andhra Pradesh, Karnataka, Punjab below targets
  • Wheat (Rabi 2025-26): Bihar, Gujarat, Punjab, Uttar Pradesh below targets

Reasons for Low Procurement

  • Production fluctuations
  • Market surplus availability
  • Minimum Support Price (MSP) vs market price
  • Demand-supply conditions
  • Participation of private traders

Committee Concerns

  • Gap between: Estimated procurement vs actual procurement
  • Indicates: Weak planning and coordination

Recommendations

1. Strengthen Procurement Planning

  • Improve estimation methods
  • Make targets more realistic

2. Better Centre-State Coordination

  • Focus on: States with repeated shortfalls

3. Real-Time Monitoring

  • Track: Production and Market arrivals

4. Improve Procurement Efficiency

  • Ensure: Timely and effective procurement operations
[2020] Which of the following factors/policies were affecting the price of rice in India in the recent past? 
1. Minimum Support Price Government’s trading 
2. Government’s stockpiling Consumer subsidies 
Select the correct answer using the code given below: 
(a) 1, 2 and 4 only (b) 1, 3 and 4 only (c) 2 and 3 only (d) 1, 2, 3 and 4

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