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APSC Mains GS Paper 3: 2023: Explain the relationship among government procurement operations, minimum support prices (MSPs) and the creation of buffer stocks in the context of Assam. (10 Marks, 150 words)

Model Answer:

According to the Shanta Kumar Committee, government procurement operations act as the vital bridge converting Minimum Support Prices (MSP) into strategic buffer stocks, ensuring food security under NFSA 2013.

Relationship Dynamics: Procurement, MSP, and Buffer Stocks

MSP Drives Procurement: Announcing a remunerative MSP incentivizes farmers to sell their marketable surplus to state agencies rather than distress-selling to middlemen.
- Assam Context: For the Kharif Marketing Season (KMS) 2025-26, Assam targeted 1.79 lakh MT of second-crop paddy procurement, expanding direct MSP benefits across the Brahmaputra Valley.
Procurement Builds the Buffer: By purchasing grains at the MSP rate, agencies like FCI, NAFED, and AFCSCL accumulate the physical stock required for the central and state pools.
- Assam Context: Assam’s adoption of the Decentralised Procurement (DCP) scheme allows AFCSCL to procure locally, reducing transit costs and streamlining operations.
Buffer Stocks Sustain Food Security: Procured grain forms the buffer utilized for the Public Distribution System (PDS) and crisis relief (crucial during Assam’s annual floods), while simultaneously stabilizing open market prices.

Overcoming Bottlenecks (NITI Aayog Aligned)

Enhance grassroots storage capacity and upgrade local rice milling infrastructure.
Maximize farmer registration via the e-Kharid portal to ensure transparent, timely MSP payments.

Strengthening this tripartite relationship through efficient decentralised operations will ensure zero hunger (SDG 2), propelling Assam’s agrarian economy toward the inclusive vision of a resilient Viksit Bharat 2047.

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