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LATEST NEWS UPDATES | Introduce competition in PDS: Basu

Introduce competition in PDS: Basu

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published Published on Nov 1, 2010   modified Modified on Nov 1, 2010

India needs to introduce competition in the public distribution system (PDS) for its ambitious food-for- all programme to work, according to country's chief economic advisor Kaushik Basu.

In an exclusive interview with NDTV, Basu outlines that if the government tries to provide food security through the present system, it will need to procure 140 million tonne of foodgrain. “The agriculture ministry has given some estimates that 62 million is what you would need, 75 million tonne being procured is a possibility. Last year, we grew 218 million tonne of food grain,” he said.

Basu thinks not enough is being done to fix the system and this is where a professional input is needed.  “Civil society can say that we want this. But how that thing is done should be the job of experts. I agree with the kind of demands NAC has made but how to make it happen needs lot of professional input,” he adds.

When asked if he wants to scrap the PDS system and have a new system in place, Basu says, “No. But you need to give people an option to go to the shop and explore. This is something that we have done in the airlines industry so successfully. You have exposed the national airlines to the competition. There is lot of improvement in Air India after that. Same will happen to PDS system.”

According to Basu, in areas where private market functions well PDS will begin to shrink. “You have given people right to food, you have empowered people to be able to buy the food …and then if PDS in some areas shrink…so be it,” he adds.


NDTV, 28 October, 2010, http://profit.ndtv.com/news/show/introduce-competition-in-pds-basu-115276?pfrom=Business


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