The government will soon have to decide on the proposal of direct cash payments in lieu of food subsidy as a key committee of Parliament has asked the ministries concerned to decide quickly on the issue. This cash payment through smart cards is increasingly being seen as an option to prevent leakage in the public distribution system (PDS), and certain variants of the system are already being experimented with by...
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An embarrassment of riches
The Union government has been widely criticised for letting foodgrain rot in its godowns, while food prices soar and millions remain underfed. In its defence the government has spoken about the fiscal cost of selling these stocks. However, the underlying problem of excessive procurement and overstocking of foodgrain has not received as much attention. The government has claimed that official agencies have been mopping up over 99.5 per cent market...
More »Killed by the Food Bill by Nitin Sethi
At a time when some of the poorest belts of India are suffering from a monsoon failure the government, has decided to let lakhs of tonnes of food grain turn inedible in the godowns rather than give it to the needy. Ironically, it has used the proposed National Food Security Act as an excuse to not distribute the grains to the needy. The Supreme Court in its last hearing had...
More »Food economy’s persistent rot by Himanshu
It is not every day that we have more than 60 million tonnes of foodgrain in our granaries. It must be an achievement, considering we were living literally from ship to mouth even in the 1960s. Unfortunately, what could have been a matter of pride has turned out to be a national shame, that too the second time in this decade (the first was in 2001). As Karl Marx said,...
More »CPI-M Demands Universal Coverage Under PDS
Expressing concern at a large quantity of foodgrains rotting in the FCI godowns across the country, the CPI-M today demanded universal coverage of the people under the Public Distribution System (PDS) for proper utilisation of available food stocks. The government should consider universal coverage of the people under the PDS by dilution the criterian of APL or BPL for not only full utilisation of available foodgrains, but also to rein in...
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