Centralised procurement
Also called: Non-DCP · Topic: Agricultural Marketing, MSP, Buffer Stocks and PDS · NCERT: Beyond NCERT
Meaning
Centralised procurement (also called the non-DCP system) is the older way of buying grain for the central pool. The Food Corporation of India (FCI) buys wheat and rice from farmers at MSP, either directly or through state agencies. FCI then stores the grain and moves it across states to where the PDS needs it. It gives uniform national control, but moving grain long distances raises transport and handling costs.
Example
Wheat procured in Punjab goes into the central pool. FCI stores it and sends it by rail to deficit states for distribution through fair price shops there.
Don't confuse with
- Decentralised procurement (DCP) (1997-98): under DCP, states procure, store and distribute grain themselves, and the Centre reimburses their costs. This saves transport costs and uses local grain for the local PDS.
Related concepts
- Procurement
- Buffer stock
- Buffer stock norms
- Operational stock
- Strategic reserve
- Open-ended procurement
- Decentralised procurement
- Price support scheme
- Price deficiency payment
- Market intervention scheme