An Empirical Analysis of Minimum Support Price Policy and Public Procurement in Chhattisgarh (2000-2012): A Case Study in Proactive State-Led Institutional Reform

Abstract

The Minimum Support Price (MSP) has been a pivotal, yet contentious, component of India's agricultural policy, designed to provide a price floor for key crops and ensure national food security. While academic discourse often characterizes the MSP regime as a regressive policy with benefits concentrated in a few surplus states like Punjab and Haryana, its application and effectiveness have varied significantly at the sub-national level. This empirical paper provides a comprehensive analysis of the MSP condition in Chhattisgarh during the period from its formation in 2000 to 2012. Utilizing a mixed-methods approach that synthesizes fragmented secondary data, this study demonstrates a profound departure from the national narrative. The analysis reveals a remarkable, nearly tenfold increase in paddy production between 2000-01 and 2010-11, a direct result of the state's proactive policy interventions. The paper establishes a clear causal link between institutional reforms—specifically, the adoption of the Decentralized Procurement (DCP) system, the expansion of Primary Agricultural Cooperative Societies (PACS), and the pioneering "end-to-end computerization" of the procurement supply chain—and tangible outcomes, including a significant reduction in PDS leakages and a high degree of farmer awareness and engagement. The findings of this study reposition Chhattisgarh not as a passive recipient of a national policy, but as an exceptional case study in effective state-led governance, demonstrating how a robust institutional framework can transform a national policy into a potent instrument for rural development and farmer welfare.