This article documents and then examines the various benefits that, it is claimed, will flow from linking the Unique Identity number with the public distribution system and the National Rural Employment Guarantee Scheme. It filters the unfounded claims, which arise from a poor understanding of how the PDS and NREGS function, from the genuine ones. On the latter, there are several demanding conditions that need to be met in order...

The Food Corporation of India (FCI) is estimated to have incurred a financial loss of Rs 484.76 crore in 2010-11 due to damage to foodgrains and storage and transit loss, Food and Public Distribution minister K V Thomas said today. FCI, a nodal agency for procurement and distribution of foodgrains, is estimated to have lost Rs 484.76 crore in 2010-11, as against Rs 437.87 crore in the previous year, the minister...

Smart card technology can be used to streamline India's unwieldy PDS. But it is yet to prove itself under real world challenges. Smart cards have become the latest buzzword to remedy India's public distribution system (PDS) — one of the largest food grain delivery networks in the world with more than 500,000 ‘ration' shops. Electronic voting machines have streamlined Indian elections. Credit cards, which can be swiped for payment at any...

Cash transfers cannot and should not replace the public provision of essential goods and services, but rather supplement them. Cash transfers are the latest fad of the international development industry, as the preferred strategy for poverty reduction. And now Indian policymakers are busy catching up. The idea was mooted in the Government's Economic Survey for 2010-11, and the Finance Minister made an explicit announcement in his budget speech for replacing some...

Pranab Mukherjee, India’s finance minister, put the rural economy at the heart of a national budget on Monday, saying ridding the farm sector of crippling supply bottlenecks would be his “focus” in the coming fiscal year.A market-neutral budget supporting agriculture, welfare schemes and the extension of banking services to more people was designed to dispel any sense that the Congress party-led government was in drift after a series of high...