Systemic Failure * Despite record procurement, poor storage has led to a criminal waste of grain * 61,000 tonnes of grain rotted as it was left in the open during the monsoon * The FCI had shut down storage facilities after low procurement in 2006-07 * The plan for decentralised storage facilities is 40 years old. It’s still hanging fire. * EGoM did not clear the surplus grains for the PDS since it would have...

The Supreme Court's observation that the above the poverty line (APL) population should be kept out of the purview of the Public Distribution System (PDS) is in direct conflict with the National Advisory Council's (NAC) recent decision for universalisation of the system beginning with 150 yet-to-be-identified districts. At present APL beneficiaries are getting up to 12 kg of foodgrains per family. The quantum was revised to 15 kg just this...

The 1,600 families in Haryana’s Panchkula district which line up at fair price shops for foodgrains and kerosene can do away with their prized ration cards, pieces of paper that entitle the poor to subsidized food and fuel. Beginning Tuesday, while they still have to queue up, these families will receive their rations after a biometric identification using smart cards. That’s a small beginning for an ambitious Rs138 crore Centrally funded project...

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...

Furious debates among policymakers about the proposed national food security law largely revolve around its financial repercussions. The Planning Commission is finally coming around to accepting the Tendulkar Committee’s estimates of 37.2 per cent BPL population or 8.5 crore BPL households. The fiscal burden in implementing the food security law for 37.5 per cent BPL population, with each household being provided 35 kg food grains, is estimated to be Rs...