THE government will need to shell out Rs 6,000 crore more in food subsidy to support poor families under the proposed Food Security Act due to the revised estimate of the number of poor families in the country. Food subsidy will account for about 1.1% of the gross domestic product in the current fiscal year, compared with 0.9% last year, said a study by Deutche Bank. The Union budget has...

At Rs 34 a kg, sugar is bitter for some 29 lakh BPL families who haven’t received a grain of the sweetener at subsidised rate for over seven months now. Every BPL card-holder is entitled to a monthly quota of 1.12 kg sugar from PDS shops at Rs 13.50 a kg while the price in the open market is Rs 34 a kg. Streamlining the public distribution system (PDS) during his tenure,...

The Central Vigilance Committee on Public Distribution System (PDS) headed by Justice (rtd) DP Wadhwa has come down heavily on the Public Districution Syetem in its recently submitted report. The committee has ruled that the whole system of procurement and distribution of food grains is built on corruption and its benefits to the poor are low. His prescription: Innovative methods to improve the system. "The whole system has to be...

Various estimates of the extra cost to the government for an improved food security Bill are doing the rounds, but many agree the Union government’s proposed food subsidy bill would double. The proposed Bill offers 25 kg per family per month at Rs 3 a kg, to only families below the poverty line, or about 84 million households. Activists are insisting this be raised to 35 kg a family and to...

At a time when granaries are overflowing, and stockpiles of food are rotting in the open, India is preparing to bring in a National Food Security Act. Saddled with the world’s largest population of hungry and malnourished, the draft bill certainly provides a ray of hope for the hungry millions. If enacted properly, it can turn appalling hunger into history. But if the intention is to only repackage old wine in...