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A fuel’s errand -Santosh Mehrotra

-The Indian Express The finance minister plans to scrap the supply of subsidised kerosene through the public distribution system (PDS) and high time, too. To begin with, why has the kerosene subsidy needed reform for decades and yet reform never materialised? Kerosene obtained through the PDS, being cheaper, is used to adulterate diesel and petrol. Kerosene Leakages in the PDS are estimated to be 40 per cent of total allocations. The diversion...

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Merge MGNREGA with DBT

-The Financial Express   Given that the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) is now a decade old, and there have been repeated allegations of it being a breeding ground for corruption, a thorough review of it is called for. Though Nitin Gadkari's plan to limit the scheme to the poorest districts and to change the amount reserved for labour payments did not go down well when he was the...

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Just how leaky is the PDS? -Rukmini S

-The Hindu Why do we not have a clear answer on just how much grain is leaking out of the Public Distribution System? If you're interested in just what ‘leakage' means and how it's worked out, here's a little primer. So first: what is leakage? Since we know anecdotally that many households do not get all the grain they are entitled to, we can assume some is being illegally diverted. It's...

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Did FCI panel inflate leakage figures to bolster case for cash transfers? -Sayantan Bera

-Livemint.com Experts say the panel's suggestions on public distribution system overlooked reforms undertaken by states New Delhi: The high-level committee on restructuring of the Food Corporation of India (FCI), which suggested sweeping changes in the procurement and distribution of foodgrains, may have based its conclusions on inflated Leakages in the public distribution system (PDS), experts say. The panel recommended that coverage under the National Food Security Act (NFSA) be reduced from 67%...

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If it’s not Bihar, it’ll be UP

-The Financial Express   With the High Level Committee (HLC) on restructuring FCI pointing to a 47% leakage in the 55 million tonnes of grain distributed through ration shops, the only viable solution is to shut down the PDS as the HLC has recommended be done over a period of time. Not surprisingly, many have argued that, in states that have restructured their ration shop operations-such as Chhattisgarh-there has been a dramatic...

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