A demand to reintroduce a universal Public Distribution System (PDS) in the country appears every now and then. Its proponents argue that universal access is necessary for ensuring food security, for better control on prices and for eliminating (at least partially) the evils of exclusion errors in the targeted PDS. The question is: what are the operational implications of access for all citizens to subsidised foodgrain? They are currently allocated as...

In April, India’s Planning Commission accepted recommendations put forth by the so-called Tendulkar Committee on a new poverty headcount for the country. Constituted by the Planning Commission under economist Suresh D Tendulkar, the committee, after four years and a new methodology, arrived at a new figure for the number of Indians living below the poverty line: 37.2 percent, ten points higher than the previous official figure. With the government’s subsequent...

Conservatives appeared to trump the “radicals” as the Sonia Gandhi-headed National Advisory Council met today to consider revolutionary suggestions to widen the content and targets of a proposed “right to food” law. The food rights campaigners in the council wanted a targeted public distribution system (PDS) to cover all except the affluent, providing not just cheap cereals but also other requirements of nursing mothers, children, the aged and the physically challenged. The...

A significant proportion of the country’s official below poverty line (BPL) population cannot be termed ‘poor’. Fathom this: around a fourth of the 14 million odd BPL households in urban India own a two-wheeler, a third of them a colour TV and almost two-third a pressure cooker. Almost one in five urban BPL households has at least one well-educated, graduate or above, member. The 56 million-strong rural BPL population too exhibits...

Is the Planning Commission too singularly focused on reducing food subsidy and intending to dissuade people from buying subsidized food rations even as the government spends thousands of crores to store excess grains in its stocks? Is it being penny wise but pound foolish? An internal note of the Plan panel suggests so. A note prepared by the panel reveals some startling information. On April 1, 2010 -- normally the...