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LATEST NEWS UPDATES | PDS revamp comes a day ahead of food law meet

PDS revamp comes a day ahead of food law meet

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published Published on Jul 14, 2010   modified Modified on Jul 14, 2010

On the eve of a decision on the draft food security law by the Sonia Gandhi headed National Advisory Council, the government unveiled a blueprint for a complete revamp of the public distribution system, or PDS. State food ministers on Tuesday approved time bound changes in the PDS to plug the weaknesses in the system to create the appropriate delivery mechanism for meeting legal commitments of the proposed law. The food security law proposes to deliver 35 kilogram of foodgrain to identified beneficiaries at highly subsidised prices and could be expanded to deliver other essentials such as pulses and edible oils.

“Elimination of bogus ration cards, correct identification of the poor, plugging diversion and leakages of foodgrains at various stages are vital for ensuring that the subsidised grain reaches the targeted beneficiaries,” food minister Mr Sharad Pawar stressed in his address.

Flagging procurement of adequate foodgrains for meeting the obligations under the proposed food law as a key challenge to the PDS, Mr Pawar also identified an exponential increase in the current grain storage facilities as another key challenge, both at the Central and the state levels. The total gap of storage capacity in the country is estimated at 140 lakh tonne, entailing a massive investment to the tune of Rs 4,000 crore.

The meet approved the use of smart cards for PDS beneficiaries and pilot projects were flagged off in both Punjab and Haryana, in a bid to replicate Chhatisgarh’s use of these in identifying beneficiaries precisely and weeding out bogus consumers. Against the 6.52 crore Below Poverty Line (BPL) households identified countrywide, the total number of ration cards issued by state governments until May 2010 was around 11.06 crore households.

Analysts have estimated that at Rs 3/kg of grain to the estimated 24 crore households in India, the government would incur a spend of Rs 136,829 crore for universal PDS. Deducting the current food subsidy of Rs 52,490 would spell an additional spend of Rs 84,399.

Beneficiaries for the food law would be identified by the Planning Commission, the minister said. The NAC is expected to give its nod to the food law on Wednesday. However, Prime Minister’s Economic Advisory Council (PMEAC) Chairman C Rangarajan indicated that Above Poverty Line (APL) consumers could also be considered for the UPA’s pet food security scheme.

The NAC has already approved universal access to the PDS in rural areas and rolling out food law implementation to beneficiaries in 150 backward districts.

Another alternative being mulled, the PMEAC chief said, was to give 30 kgs/month of grain to the BPL consumers and 15kgs/month to APL consumers.

Experts hold that there is renewed and focussed realisation of the importance of the PDS in a free market economy, especially in view of spiralling food prices.


The Economic Times, 14 July, 2010, http://economictimes.indiatimes.com/news/economy/policy/PDS-revamp-comes-a-day-ahead-of-food-law-meet/articleshow/6165247.cms


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