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LATEST NEWS UPDATES | Conflicting signals on inclusion of non-poor in PDS by Gargi Parsai

Conflicting signals on inclusion of non-poor in PDS by Gargi Parsai

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published Published on Jul 28, 2010   modified Modified on Jul 28, 2010


The Supreme Court's observation that the above the poverty line (APL) population should be kept out of the purview of the Public Distribution System (PDS) is in direct conflict with the National Advisory Council's (NAC) recent decision for universalisation of the system beginning with 150 yet-to-be-identified districts. At present APL beneficiaries are getting up to 12 kg of foodgrains per family. The quantum was revised to 15 kg just this Monday for six months, primarily to dispose of stocks.

No doubt the court's intention is to ensure that the excess foodgrains the government is sitting on should be disposed of rather than rot in godowns or get damaged for lack of adequate storage facilities. Also, the court wanted to ensure that the below the poverty line (BPL) population was well covered under the food security net in a country where children and women are infamously malnourished.

But what the court has suggested on keeping the non-poor out of the system, what the NAC has recommended, what the Planning Commission wants and what the Union Food Ministry initially worked out are sending conflicting signals.

The court has questioned the allocation of subsidised foodgrains to the 11.1 crore APL (non-poor) beneficiaries. The NAC has recommended that 35 kg be provided to the APL in majority-poor 150 districts and in five years time, 25 kg be given to almost all APL families in the rest of the country. The Planning Commission wants the APL requirement contained at 10 kg per month per family on the basis of offtake. The Food Ministry suggested in its initial draft proposal that the BPL be provided 35 kg per family per month, while the APL be given “as per availability of foodgrains.”

Various suggestions emerge from the manner in which each is looking at availability of foodgrains for disbursal under the PDS. The Food Ministry wants to play it safe, basing its calculations on the average availability of 43 million tonnes of foodgrains procured per year. The Planning Commission is looking at 55 million tonnes, while the NAC has planned for 60 million tonnes.

Be that as it may, the requirement for a BPL family is estimated at 70 kg per month which means that it is dependent on market to meet its full requirement. At the same time, the government cannot impinge hugely on mandi arrivals as this would incur huge costs, upset the markets, cause supply-side constraints, put pressure on storage facility and shoot up prices. Therefore, the provision of 35 kg of cheap foodgrains to poor families is to meet the minimum requirement of a family.

Surplus food stocks

The main reason for food stocks being almost 20 million tonnes in excess of norms is that the Food Ministry is awaiting the final decision of the NAC on universalisation of the PDS. Since food security is heading towards becoming a rights-based issue, the government will have to provide by law, drought or floods, rains or no rains, grain or no grain.

In a country where 60 per cent of farming is rain-fed, there is naturally a concern to keep enough stocks in hand to be able to deliver when the National Food Security Bill becomes a reality, possibly by next April. And if the PDS has to be universalised, then it is prudent to keep calibrated surplus stocks in hand, no doubt stored in standardised storage facility.

Let there not be a repeat of the 2005-06 situation when in a knee-jerk reaction, surplus wheat stocks were frittered away and then the country had to import 2.5 million tonnes of wheat at high costs to meet domestic requirements.


The Hindu, 29 July, 2010, http://www.thehindu.com/todays-paper/tp-national/article539240.ece
 

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