When noted economist Jean Dreze visited Surguja in Chhattisgarh a decade ago, its utterly non-functional Public Distribution System (PDS) looked like especially “designed to fail.” The National Advisory Committee member has written in a recent article that the ration shop owners illegally sold the grain meant for the poor and “hunger haunted the land.” But that was then. The economist was pleasantly shocked to see the transformation this time. “Ten years...

Prime Minister Manmohan Singh was right when he maintained in his meeting with the media that the judiciary should not stray into the realm of policy formulation for food management. But the same plea cannot apply to the media which brought the issue of rotting of foodgrain to public attention and virtually put the government in the dock for criminal wastage of grains in its warehouses. Policy deficiencies are clearly...

The Union Food Ministry today told the Supreme Court that its suggestion on limiting food procurement to available storage facilities, if put to action, would hit the poor farmer and “drastically impact food security of the nation”. In a 19-page affidavit, C Vishwanath, joint secretary in the Ministry, said: “If Food Corporation of India (FCI) and state government agencies that do the work of procurement were to limit procurement only to...

Kaushik Basu proposes a new framework for release of foodgrains from government warehouses. Last year, official food inflation peaked at 21.05 per cent for the week ended November 28. Since then, it has eased — though the year-on-year rise of 10.86 per cent for August 21 is still in double-digit territory. Moreover, in absolute terms, the ‘food articles' index for the latest recorded week, at 303.3, is higher than the 296.1 level...

Even as the prime minister protests his inability to distribute food free of cost to the poor, the overflowing food stocks seem set to lead to another year of blockbuster expenditure on the public distribution system. According to numbers from the department of food and public distribution system (PDS), the government spent Rs25,600 crore on food subsidies during just the first four months of the year. The amount — higher than the...