Telangana Civil Supplies Department to bypass wholesalers by supplying rice directly from millers
GS3Economy · S&T · Environment · Security· Industry, investment & MSMEs· Prelims·
Supply chain optimization and price stabilization: a GS3 case study on intermediary elimination.
Why in news
The Telangana Civil Supplies Department announced a direct supply model from millers to retailers to bypass wholesalers and control rice prices.
Background
The Telangana Civil Supplies Department is removing wholesalers from the supply chain to facilitate direct miller-to-retailer distribution. The department has established a price cap for rice ranging from ₹66 per kg to ₹79 per kg.
Facts for Prelims
- FactRice price cap in Telangana: ₹66 per kg to ₹79 per kg
- BodyDistrict Civil Supplies Officer: The official point of contact for retailers to request stock
- FactDirect supply model: Millers to local retailers bypassing wholesalers
Prelims practice question
With reference to the rice supply model in Telangana, consider the following statements:
- The department is removing wholesalers to facilitate direct miller-to-retailer distribution.
- The price cap for rice has been set between ₹86 per kg and ₹99 per kg.
- Retailers must contact the State Agriculture Minister to request rice stock.
Which of the statements given above is/are correct?
- (a)1 only
- (b)2 only
- (c)1 and 3 only
- (d)1, 2 and 3
Show answer
Answer: (a) 1 only — Statement 1 is correct. Statement 2 is incorrect: The price cap is ₹66 per kg to ₹79 per kg. Statement 3 is incorrect: Retailers must contact the District Civil Supplies Officer.
For Mains
Q. Examine how the elimination of intermediaries in essential commodity supply chains can stabilize prices and ensure food security in rural economies.
Dimensions to cover in your answer
- Market distortion: Addressing price volatility caused by middleman-driven arbitrage
- Logistical bottleneck: Ensuring mill-to-retailer infrastructure can handle high-volume distribution
- Regulatory oversight: Monitoring price compliance at the retail level without wholesaler mediation
Keywords: Supply chain optimization · Price stabilization · Intermediary elimination · Food security · Market intervention
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This note is generated automatically from SatyaDheesh's news feed and mapped to the UPSC CSE syllabus. Check facts against the original report or PIB before using them in an answer.