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Shivraj Model of Procurement


The Central Government has almost prepared a third model of food procurement on the minimum support price. A central committee under the Chairmanship of Union Home Minister Mr.Rajnath Singh comprising concerned ministers formulating third model for the foodgrain procurement. It has taken into considerations the shortcomings in the earlier two models to remove it and make further improvement in the system. For the third model the ‘Bhavantar’ Yojna of Madhya Pradesh Chief Minister Mr.Shivraj Singh Chouhan itself is a model for it. It will be very apt and appropriate if the third model of procurement is named as Shivraj model of procurement. His ‘Bhavantar’ yojna is his personal vision that become instant hil all over India. Many ministers of other states rushed to Madhya Pradesh to study the ‘Bhavantar’ yojna and were so impressed that they decided to implement in their respective states. Now the Central Government itself approved and adopted it. Mr.Chouhan himself a farmer understands the farming and farmers intimately, their problems and its solutions. By ‘Bhavantar’ he has introduced a very appropriate measure in the procurement of foodgrains on support price and provided assured help all the time. Mr.Chouhan earlier also introduced many unique schemes for the welfare of farmers. For many years he paid Rs.100 per quintal as bonus on and above the procurement minimum support price. But some element misused his generosity and foodgrains from other states Rajasthan, Uttar Pradesh and Bihar were brought in Madhya Pradesh to take the advantage of extra bonus payment. The Central Government also asked the Madhya Pradesh to discontinue the bonus payment. But now again Mr.Chouhan has announced that farmers of Madhya Pradesh will get Rs.200 incentive amount for rabi wheat and kharif paddy. According to a note submitted by the Niti Ayog to the Central Committee if there are loss of Rs.25 per cent to the states in the procurement the Centre should pay 100 of it, if 20 to 30 per cent the Centre will pay 60 per cent but if it is 30 to 40 per cent than Centre and States should bear the financial burden equally. If the loss in the MSP system is upto 15 per cent then total expenditure burden would be around 403.2 billion rupees and if it is of 25 per cent the expenditure will mount to 537.7 billion of rupees. In the third model of procurement the wheat and paddy are kept outside of it and 40 per cent of the total production will be sold out.

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