Dreze’s letter to PM: PDS is reviving; why hasty shift to cash?

His survey shows poor prefer food, not cash, in well-functioning PDS areas

GN Bureau | July 22, 2011




A group of research scholars and student volunteers led by development economist and former NAC member Jean Dreze has written a letter to the prime minister asserting that its survey shows that the public distribution system (PDS) is witnessing “an impressive revival” across the country.
“The days when up to half of the PDS grain was “diverted” to the open market are gone”, it says.

The group surveyed more than 106 randomly selected villages in nine states – Andhra Pradesh, Orissa, Chhattisgarh, Himachal Pradesh, Tamil Nadu, Rajasthan, Uttar Pradesh, Jharkhand and Bihar – to arrive at their conclusion.

The letter points out that all the states, except Bihar, took major initiatives to improve PDS and that these efforts are showing results. “We also found that the PDS had become a lifeline for millions of rural households. A well-functioning PDS virtually guarantees that there is always food in the house”, it goes on to add, advocating that there is a good case for “near-universal PDS”.

The survey also looked at the option of cash transfer in the draft food security bill and says in the areas where PDS system is functioning well and among the poor households a majority of people opposed cash transfer, in place of food. The reasons varied: poor banking facility, misuse of money, possibility of spike in prices by the traders etc.

Only in Bihar and parts of UP where PDS is not working people showed substantial interest in cash transfer.

Therefore, the letter appeals to the prime minister “to ensure that the National Food Security Act includes the strongest possible safeguards against a hasty transition from food entitlements to cash transfers”.

Comments

 

Other News

When Nandini Satpathy told Biju Patnaik: ‘I’ll sit on the chair you are sitting on’

Nandini Satpathy: The Iron Lady of Orissa By Pallavi Rebbapragada Simon and Schuster India, 321 pages, Rs 765

Elections 2024: 1,351 candidates in fray for Phase 3

As many as 1,351 candidates from 12 states /UTs are contesting elections in Phase 3 of Lok Sabha Elections 2024. The number includes eight contesting candidates for the adjourned poll in 29-Betul (ST) PC of Madhya Pradesh. Additionally, one candidate from Surat PC in Gujarat has been elected unopp

2023-24 net direct tax collections exceed budget estimates by 7.40%

The provisional figures of direct tax collections for the financial year 2023-24 show that net collections are at Rs. 19.58 lakh crore, 17.70% more than Rs. 16.64 lakh crore in 2022-23. The Budget Estimates (BE) for Direct Tax revenue in the Union Budget for FY 2023-24 were fixed at Rs. 18.

‘World’s biggest festival of democracy’ begins

The much-awaited General Elections of 2024, billed as the world’s biggest festival of democracy, began on Friday with Phase 1 of polling in 102 Parliamentary Constituencies (the highest among all seven phases) in 21 States/ UTs and 92 Assembly Constituencies in the State Assembly Elections in Arunach

A sustainability warrior’s heartfelt stories of life’s fleeting moments

Fit In, Stand Out, Walk: Stories from a Pushed Away Hill By Shailini Sheth Amin Notion Press, Rs 399

What EU’s AI Act means for the world

The recent European Union (EU) policy on artificial intelligence (AI) will be a game-changer and likely to become the de-facto standard not only for the conduct of businesses but also for the way consumers think about AI tools. Governments across the globe have been grappling with the rapid rise of AI tool

Visionary Talk: Amitabh Gupta, Pune Police Commissioner with Kailashnath Adhikari, MD, Governance Now


Archives

Current Issue

Opinion

Facebook Twitter Google Plus Linkedin Subscribe Newsletter

Twitter