-The Economic Times   Dear Smt Gandhi, We, a group of academic economists, are writing to you about the proposed National Food Security (NFS) Act legislation that is of profound importance to India's economy. We believe that it is appropriate that India pursues the goal of genuine food security for all through a law that guarantees a minimum transfer to every adult except a small subset of the most affluent who...

Cash transfers are now suggested by many as a silver bullet for addressing the problems that plague India’s anti-poverty programmes. This article argues instead for evidence-based policy and informed public debate to clarify the place, prospects and problems of cash transfers in India. By drawing on key empirical findings from academic and grey literature across the world an attempt is made to draw attention to three aspects of cash transfers...

The current perception that cash transfers can replace public provision of basic goods and services and become a catch-all solution for poverty reduction is false. Where cash transfers have helped to reduce poverty, they have added to public provision, not replaced it. For crucial items like food, direct provision protects poor consumers from rising prices and is part of a broader strategy to ensure domestic supply. Problems like targeting errors...

The draft Food Security Bill makes it compulsory for state governments to pay a food security allowance to targeted sections in case of failure to supply foodgrain through a sweeping welfare scheme targeted at nearly three-fourths of the population. The amount will be decided by the central government. The draft bill also presses for a radical overhaul of the food distribution system by giving incentives to independent agencies that procure...

-PTI   Delhi may soon become the first city in the country to give cash instead of subsidized kerosene to BPL families, a move aimed at controlling widespread pilferage of the fuel. As per the proposal put forth by chief minister Sheila Dikshit, cash equivalent of the monthly kerosene subsidy will be directly transferred to the bank account of the female head of the family. A BPL family is likely to...