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A grains policy in silos

The Food Corporation of India (FCI) should feel relieved that the private sector has stepped in to create additional foodgrain storage capacity, bridging the extant gap. However, it is difficult to fathom why much of the new warehousing capacity is sought to be put in place in grain-surplus states (production centres) — notably Punjab and Haryana, besides some others like Andhra Pradesh, Tamil Nadu and Maharashtra — rather than in...

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Inefficient PDS scheme troubles poor people

Irregularities in the public distribution system (PDS) are rampant in the district due to lack of an effective vigilant mechanism. Fair price shop dealers, who are allegedly having nexus with politicians and bureaucrats, are diverting essential commodities to the black market. There are 2,600 fair price shops across the district and about 11 lakh poor families benefit with these. The vigilance and enforcement officials conducted several raids and unearthed illegally hoarded subsidised rations...

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Chhattisgarh shows the way by Jean Dreze and Reetika Khera

India's Public Distribution System (PDS) has been in a bad shape for decades, often thought to be beyond repair. Recent experience, however, suggests otherwise. Political will, increased transparency and community participation have led to an amazing revival of the PDS in Chhattisgarh though the state has only shown contempt for people's rights in other contexts… Somehow, the PDS became a political priority in Chhattisgarh and a decision was made to turn...

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Micro finance, macro objectives by Krishnamurthy V Subramanian

Sample some data on the microfinance performance in India: According to the data provided by www.mixmarket.org, microfinance in India reached close to 270 lakh active borrowers in 2009, with the average loan size close to Rs 8,000. This translates into total borrowing to over Rs 20,000 crore. Though this number seems large, it represents only 0.3% of our GDP. Thus, large swathes of poor, both in our villages and urban...

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Centre says 'no' to export of non-basmati rice

The Union Food and Agriculture Ministry has turned down requests from Punjab, Andhra Pradesh and Chhattisgarh for resuming export of non-basmati rice. The government has banned export of wheat and non-basmati rice from February 2, 2007 and April 1, 2008 to stabilise prices of these commodities in the domestic market and to maintain sufficient stocks for ensuring food security in the country. Not acceded to “Requests were received from the State governments of...

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