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Difficulty: MediumAgriculture Sector Economics, Land Reforms, Subsidies, and Public Distribution System

Consider the following statements regarding the Decentralized Procurement Scheme (DCP) implemented for foodgrain management and public distribution in India:

1. State governments directly procure, store, and issue foodgrains for the Targeted Public Distribution System (TPDS) within their jurisdiction.
2. Participation in the Decentralized Procurement Scheme is mandatory for all Indian States under the provisions of the National Food Security Act (NFSA), 2013.
3. Surplus stocks procured by a participating state beyond its local welfare requirements are handed over to the Food Corporation of India (FCI) for the central pool.

Which of the statements given above is/are correct?

  1. 1 and 3 onlyAnswer
  2. B
    1 and 2 only
  3. C
    2 and 3 only
  4. D
    1, 2 and 3

Answer

Statements 1 and 3 are correct. The Decentralized Procurement Scheme (DCP) allows state governments to directly procure, store, and distribute foodgrains, handing over any surplus to the Food Corporation of India (FCI). However, participation in the scheme is voluntary for states, not mandatory under NFSA 2013.
Statements 1 and 3 are factual and correct. The Decentralized Procurement Scheme (DCP), initiated in 1997-98, aims to build local procurement capacities, reduce transit losses, and cater directly to regional consumption preferences. Participating state governments directly procure foodgrains at Minimum Support Price (MSP), store them, and issue them under TPDS. Any excess stock beyond the state's welfare requirement is surrendered to FCI for national redistribution. Statement 2 is false because adoption of DCP is optional and voluntary for state governments.

Step-by-Step Solution

1
Evaluate Statement 1 regarding state procurement and distribution under DCP.
Statement 1 is correct.
The DCP scheme was introduced in 1997-98 to encourage local procurement, minimize cross-transportation of foodgrains, and enhance procurement efficiency by enabling state agencies to procure and distribute directly under TPDS.
2
Evaluate Statement 2 regarding the statutory mandatory status of DCP under NFSA 2013.
Statement 2 is incorrect.
DCP is a voluntary operational framework option offered by the Central Government to States; it is not a mandatory statutory clause imposed on all states by the National Food Security Act (NFSA) 2013.
3
Evaluate Statement 3 regarding handling of surplus foodgrain stock.
Statement 3 is correct.
If a DCP state procures foodgrains in excess of its targeted requirement for internal welfare distribution, the surplus quantity is handed over to the Food Corporation of India (FCI) to maintain the central pool.

Key Concept

Decentralized Procurement Scheme (DCP) operational mechanics and state-level foodgrain management
Estimated Time:1m 15s
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Topics

Agriculture Sector Economics, Land Reforms, Subsidies, and Public Distribution System