The crux of the problem is not leakages, but unsold stocks. The debate on the public distribution system is being increasingly overwhelmed by the issue of corruption. The pressures on the system are seen primarily, if not entirely, as one of leakages. This preoccupation with leakages has reached a point where the government appears set to throw up its hands and just hand over cash to families, irrespective of whether they...
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Food for thought: The PDS saga-CJ Punnathara
In the mid-eighties there was a rumour which later turned out to be true: US livestock were being fed with foodgrains in order to ensure better quality of their meat. Later it proved to be corn and not fine cereals like wheat and rice. The Indian intelligentsia was appalled and indignant: How come cows and buffaloes were fed with grains while millions of people continued to live below the poverty line...
More »Food bill threat to fiscal discipline
-The Telegraph Annual expenses for the government’s food security programme have been estimated at Rs 112,205 crore, which will make it very difficult for the government to fulfill its commitments on checking fiscal deficit. Food and consumers affairs minister K.V. Thomas disclosed the massive bill on the programme today in the Rajya Sabha, though no mention of this was made in Friday’s budget. Finance minister Pranab Mukherjee had just said he would foot...
More »Govt pegs FY13 subsidy bill 14% lower than current fiscal
-PTI The government has pegged its outgo on food, fuel and fertiliser subsidies in the 2012-13 fiscal at over Rs1.79 lakh crore, nearly 14% lower than the revised estimates for the current fiscal. According to the Budget proposals, the government's subsidy bill on food, petroleum and fertilisers is estimated at Rs1,79,554 crore for the 2012-13 fiscal as against Rs2,08,503 crore in the revised estimates for this fiscal. Interestingly, the revised estimate for this...
More »Food Security bill: Rs 1.15 lakh cr more needed to raise farm output
-PTI An additional investment of Rs 1,15,660 crore would be required to revitalise the agriculture sector and boost production to meet the foodgrains demand under the proposed Food law, Parliament was informed today. "To effectively implement the proposed Food Security Act, it is estimated that there should be an additional production of about 70-75 million tonnes of foodgrains," Minister of State for Agriculture Harish Rawat said in a written reply to Lok...
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