{"id":71749,"date":"2020-12-04T16:40:03","date_gmt":"2020-12-04T11:10:03","guid":{"rendered":"https:\/\/blog.forumias.com\/?p=71749"},"modified":"2021-05-10T15:08:03","modified_gmt":"2021-05-10T09:38:03","slug":"need-for-the-procurement-system","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/need-for-the-procurement-system\/","title":{"rendered":"Need for the procurement system"},"content":{"rendered":"<p><strong>Context-<\/strong> Dismantling the procurement system is neither in the interests of farmers nor the government.<\/p>\n<p><strong>What are the concerns of farmers related to new farmer\u2019s acts?<\/strong><\/p>\n<p><strong>Farmer\u2019s concern-\u00a0<\/strong><\/p>\n<ul>\n<li>Their main worry is about a possible withdrawal of the Minimum Support Price (MSP) and a dismantling of the public procurement of grains.<\/li>\n<li>This could corporatize agriculture;\u00a0threaten the current mandi network and State revenues.<\/li>\n<\/ul>\n<p>However, the government claims that the farmer\u2019s new laws will-<\/p>\n<ul>\n<li><strong>Break the monopoly-<\/strong> It allows intra-state and inter-state trade of farmers\u00a0produce beyond the physical premises of Agricultural Produce and Livestock Market Committee\u00a0(APMC) markets.<\/li>\n<li>The MSP-procurement system will continue, and that there is absolutely no plan to dismantle the system.<\/li>\n<li><strong>Unshackle farmers<\/strong>&#8211; increase options for farmers in the output markets<\/li>\n<li><strong>Boost competition<\/strong>&#8211; The competition will increase and private investment will reach villages. Farming infrastructure will be built and new employment opportunities will be generated.<\/li>\n<\/ul>\n<p><strong>Why farm protests have been highly intense in Punjab, Haryana?<\/strong><\/p>\n<ol>\n<li><strong>PDS is the lifeline<\/strong> &#8211; The procurement system and MSP mechanism is strong in Punjab and Haryana.<\/li>\n<\/ol>\n<ul>\n<li>Nearly 88% of the paddy production and 70% of the wheat production in Punjab and Haryana (in 2017-18 and 2018-19) has been absorbed through public procurement.<\/li>\n<\/ul>\n<ol start=\"2\">\n<li>Other states are hardly benefitted from the MSP mechanism.<\/li>\n<\/ol>\n<p><strong>Does government want this procurement system?<\/strong><\/p>\n<p>The need for procurement of paddy and wheat to government is even more because-<\/p>\n<ol>\n<li><strong>To support the needy one<\/strong>&#8211; There are nearly 80 crore NFSA (National Food Security Act) beneficiaries and an additional eight crore migrants who need to be supported under the PDS.<\/li>\n<li><strong>To maintain the PDS<\/strong> &#8211; \u00a0The government needs an uninterrupted supply of grain, particularly from these two States.<\/li>\n<li><strong>To overcome COVID-19 situation-<\/strong> Due to the onset of the novel coronavirus pandemic and the migrant crisis, government needs to procure a huge quantum of grains than in previous years as the government cannot afford to go to the open market.<\/li>\n<\/ol>\n<p><strong>What improvements are required in new farmer\u2019s Act?<\/strong><\/p>\n<ul>\n<li><strong>Regulatory mechanism<\/strong>&#8211; Framework for supervision of all trade (irrespective of its being done on the electronic market or physical market) to ensure fair play by private players\u00a0vis-\u00e0-vis\u00a0farmers<\/li>\n<li><strong>Lack of transparency in trade area transactions<\/strong> are two of the major limitations that need to be addressed immediately.<\/li>\n<\/ul>\n<p>Instituting these safeguards will make the reforms foolproof.<\/p>\n<p><strong>What is the way forward?<\/strong><\/p>\n<ul>\n<li>The government has to continue its procurement from Punjab and Haryana even after the COVID-19 situation improves and the migrant crisis abates, as the obligations under the NFSA will continue.<\/li>\n<li>The government should reach out to the farmer groups and assures them of the indispensability of MSP-procurement system.<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Context- Dismantling the procurement system is neither in the interests of farmers nor the government. What are the concerns of farmers related to new farmer\u2019s acts? Farmer\u2019s concern-\u00a0 Their main worry is about a possible withdrawal of the Minimum Support Price (MSP) and a dismantling of the public procurement of grains. This could corporatize agriculture;\u00a0threaten&hellip; <a class=\"more-link\" href=\"https:\/\/forumias.com\/blog\/need-for-the-procurement-system\/\">Continue reading <span class=\"screen-reader-text\">Need for the procurement system<\/span><\/a><\/p>\n","protected":false},"author":61,"featured_media":71798,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[1230,1351,1310],"tags":[1285,1275,1471],"class_list":["post-71749","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-9-pm-daily-articles","category-daily-news","category-daily-news-updates","tag-agri_0","tag-agri_1","tag-farm_laws_related_issues","entry"],"jetpack_featured_media_url":"https:\/\/i0.wp.com\/forumias.com\/blog\/wp-content\/uploads\/2020\/12\/Need-for-the-procurement-system.jpg?fit=1280%2C720&ssl=1","views":{"total":0,"cached_at":"","cached_date":1704760655},"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/71749","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/61"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=71749"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/71749\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media\/71798"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=71749"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=71749"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=71749"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}