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Resource centre on India's rural distress
 
 

Food before cash: Because PMJDY cash transfers will exclude many of India’s poorest -Rohini Pande , Simone Schaner & Charity Troyer Moore

-The Indian Express

Cash is easy to carry and widely accepted. But, our analysis of nationally representative survey data, described below, suggests that these transfers will exclude many of India’s poorest and, for others, come too late.

The vast majority of India’s poor rely on daily wage labour for sustenance. With the current lockdown and its likely extension, millions of daily labourers and their families can no longer earn the money they need to survive. In this unprecedented situation, the Indian state must respond swiftly to prevent widespread acute hunger.

The state is taking this challenge seriously: India has launched its largest-ever cash transfer programme targeting women with Pradhan Mantri Jan Dhan Yojana (PMJDY) accounts and increased food subsidies, among other efforts. Given the scale of economic distress, many have called for increases in cash transfers.

Cash is easy to carry and widely accepted. But, our analysis of nationally representative survey data, described below, suggests that these transfers will exclude many of India’s poorest and, for others, come too late. The immediate need is to focus on distributing adequate food support to all the poor who need it.

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