Q. Consider the following objectives of the Decentralised Procurement Scheme of the Government of India:

1. To reduce the transportation costs
2. To pass on the subsidy burden of the central government to state governments
3. To cover more farmers under the Minimum Support Price scheme
4. To enable making food grains available as per local tastes

Which of the above statements is/are correct?
Answer: Only 1, 3 and 4
Notes: The Decentralised Procurement Scheme aims to reduce transportation costs, cover more farmers under the MSP, and make food grains available as per local tastes (Statements 1, 3, and 4). However, it does not pass the subsidy burden from the Centre to the States; rather, the Central Government reimburses the difference between economic cost and Central Issue Price as subsidy. Statement 2 is thus incorrect.