Agricultural procurement is the process of sourcing and purchasing crops and farm produce for markets, processing units, and government food programs. Two key approaches—centralized and decentralized—help ensure an uninterrupted food supply chain.
Both models play an important role: centralized procurement provides economies of scale and price stability, while decentralized procurement encourages local participation and quick response to regional needs.
A single authority—such as a government agency or large cooperative— purchases produce in bulk and distributes it across regions. This model ensures uniform quality standards and stable pricing, and reduces administrative duplication.
Local authorities or state agencies directly purchase from farmers within their region. It supports local markets, reduces transport costs, and allows for quick adaptation to regional food demand.
Ensures small and marginal farmers can access both local and national markets.
Combining both models helps maintain fair prices even during seasonal fluctuations.
Integrates national scale with local agility for a more resilient food supply chain.
