-The Economic Times The story of rotting foodgrains and hunger rocked the Lok Sabha yet again on Wednesday morning, prompting the government to say it was ready for consultations with political parties to find a long-term solution to the problem of storage facilities. Finance minister Pranab Mukherjee gave this assurance when an angry Opposition sought greater availability of jute sacks for wheat before the monsoon. BJP and its ally JD(U) have been...
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At the heart of the PDS crisis-Narendar Pani
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...
More »The rot’s now setting in
-The Hindustan Times The government stocks a fifth of its grain out in the open, left to be washed by the monsoon. As the UPA’s most ambitious welfare programme — food security for poor Indians — is unrolled, more grain will be collected and allowed to rot unless warehouses are built to stock an additional 35 million tonnes beyond the 110 million tonnes of storage we already have, the Planning Commission...
More »'Mismatch between wheat procurement and storage'
-The Hindustan Times The government on Monday admitted a mismatch between wheat procurement and storage and said efforts were on to ease pressure on go-downs by encouraging exports and providing foodgrain to MNREGA workers as part of wages. Finance minister Pranab Mukherjee’s brief statement on farmers’ light in the Lok Sabha during the zero hour came in response to vociferous protests by many political parties on the plight of farmers due...
More »Release of foodgrain could inflate subsidy bill by Rs 20-25K crore-Rajeev Deshpande
With its granaries brimming over, the government faces a crippling dilemma: The tab for releasing foodgrain to make way for new arrivals adds up to Rs 20,000-25,000 crore, an unviable addition to the subsidy bill. The government's bind was succinctly outlined by finance minister Pranab Mukherjee when he told a meeting called by Prime Minister Manmohan Singh on Wednesday that vacating food silos will mean a hefty cost at a time...
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