To ensure transparency in delivery of commodities to the poor in Rajasthan The Rajasthan Government has decided to conduct the much sought-after social audit for fair price shops functioning under the public distribution system (PDS) to ensure transparency and effectiveness in the delivery of essential commodities to poor people. The move follows the success of similar exercise for the Mahatma Gandhi National Rural Employment Guarantee Act. The social audit is being introduced...

The draft Food Security Bill makes it compulsory for state governments to pay a food security allowance to targeted sections in case of failure to supply foodgrain through a sweeping welfare scheme targeted at nearly three-fourths of the population. The amount will be decided by the central government. The draft bill also presses for a radical overhaul of the food distribution system by giving incentives to independent agencies that procure...

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...

-The Business Standard   India's 68% population may get legal right to subsidised food if the draft National Food Security bill prepared by the Food Ministry is approved by a panel of ministers at the forthcoming meeting. After analysing the recommendations of the National Advisory Committee (NAC) and Rangarajan Committee, the Food Ministry has prepared a draft bill, likely to be placed before the Empowered Group of Ministers (EGoM) on food next...

India has large wheat stocks already yet policy dictates they increase. In states like Punjab, Haryana, UP and Gujarat prices have fallen and are below the minimum support prices. This is a policy-induced outcome. A safe game in grains is fine, given the global politics of grain trade and the great ability of Indian politics to subsidise the wrong man in the vote bank — but how safe is safe? The...