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...

Massive grain procurement to meet the requirements under the proposed national food security law could drive out the private sector and have larger implications on the state of the domestic procurement market, a study on food and nutritional security has warned. Apart from impacting exports and cereal price in the open market, rising public procurement will only make it costly to buy, store, transport and distribute grain, the study said, adding...

An urban Indian spending a penny more than Rs 578 a month – roughly Rs 20 a day – on all his basic needs cannot be termed poor and would not receive social benefits and subsidies given by the Centre to BPL citizens, the Planning Commission has said. The commission told the Supreme Court on Tuesday that a city dweller cannot be termed poor if his average monthly spends exceed Rs...

The class bias in government policy is clear in the decision to release a small amount of foodgrain in the open market to tackle inflation. MOST people would agree that there is a strong element of speculation underlying the current inflation and that forward trading contributes to it. Yet the government, though it has banned forward trading in certain commodities under public pressure, is curiously reluctant to see this point....