UPSC Mains 2024 GS3 Q14 — Agricultural buffer stocks
Elucidate the importance of buffer stocks for stabilizing agricultural prices in India. What are the challenges associated with the storage of buffer stock? Discuss. (Answer in 250 words) 15
Question Decoded — examiner's intent
- Directive verbs
- ElucidateDiscuss
- Scope keywords
- buffer stocksstabilizing agricultural priceschallenges associated with the storageIndia
- Implicit sub-parts
- Mechanism of how buffer stocks act as a price ceiling and floor (buffer-stocking operations).
- Importance for food security and consumer inflation control vs. farmer income protection.
- Structural and logistical hurdles in the current storage infrastructure (FCI and CWC).
- Economic and fiscal implications of excessive procurement and carrying costs.
- Common pitfalls
- Focusing too much on the PDS (Public Distribution System) and food security while ignoring the 'price stabilization' aspect for both consumers and producers.
- Failing to mention the 'Open Market Sale Scheme' (OMSS) as a tool for price control.
- Vague descriptions of storage issues without mentioning technical concepts like 'cap and plinth' storage or 'wastage-to-procurement' ratios.
- Neglecting the fiscal burden and the 'economic cost of foodgrains' vs. the MSP-Issue Price gap.
- Dimensions required
- Economic (Price stability, fiscal deficit, inflation)Logistical (Infrastructure, warehousing, cold chains)Policy/Institutional (FCI, Shanta Kumar Committee recommendations)Socio-Political (Small farmer interests vs. consumer food security)
- Marks allocation hint
Allocate approximately 5 marks to the importance of price stabilization (75-80 words), 7 marks to the multi-faceted storage challenges including fiscal and physical wastage (120 words), and the remaining 3 marks for a balanced introduction and a way forward citing reforms like silo-based storage or the Shanta Kumar Committee.
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