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Robbing The Hungry - the racket called PDS
Written By murali772 - 16 December, 2007
With even the likes of Medha Patkar critical of the system, perhaps the only ones who would be opposed to it's being dismantled would now be just the racketeers and a few pseudo-socialists. Isn't it a crying shame that the country continues to allow as massive a loot as an annual Rs 10,000 crores by this lot?
text of the letter sent to the New Indian Express:
I refer to your editorial captioned 'Robbing the hungry' of the 15th December.( http://www.newindpress.com/newspages.asp?page=f&Title=First+Editorial&)
A few months back, Medha Patkar, had co-authored an article, that had appeared in another prominent national newspaper, criticizing the the PDS in equally strong terms. (http://timesofindia.indiatimes.com/LEADER_ARTICLE_Stop_The_Robbery/rssarticleshow/2468448.cms )
However, she seemed to think that the suggested alternative, of 'food stamps' would not work since they could easily be counterfeited. Perhaps, she needs to be made aware of fool-proof arrangements here that new technologies can ensure.
Whatever, with even the likes of Medha Patkar critical of the system, perhaps the only ones who would be opposed to it's being dismantled would now be just the racketeers and a few pseudo-socialists. Isn't it a crying shame that the country continues to allow as massive a loot as an annual Rs 10,000 crores by this lot?
Very much as stated, it is time the citizens brought on pressure to dismantle such a system in its entirety.
Muralidhar Rao
COMMENTS
Food stamps - Really foolproof ?
Naveen - 29 March, 2010 - 08:18
Food stamps is a good idea, but knowing well how our system works, food stamps will find their way into the pockets of the better off, not to mention the "fake food stamp racket" or "food stamps scam" or some such commonly heard term !!
Privatise both aspects of distribution
SB_YPR - 29 March, 2010 - 09:33
not to mention the "fake food stamp racket" or "food stamps scam" or some such commonly heard term !!
As Murli sir has pointed out, SODEXHO and other such food coupons could be used, and private companies could be invited to supply the same with holograms (through open tendering or by offering tax incentives etc.) This should take care of the genuineness of food stamps.
Organized retail chains may be absent in rural areas.
The distribution aspect, as pointed out, could be privatised by handing it out to organised retail chains such as Food Bazaar, Reliance Fresh, More, etc. Since these are already targeting rural areas as the next big consumer base, it should not be too difficult to incentivise them to set up shop there.
Efficiency can be achieved by using Bio Metrics to a large extent and the only hurdle will be getting people ID-ed the first time.
Precisely. And since the process is already on (UID project), genuine BPL beneficiaries can be identified (and verified biometrically). Eventually, once UID coverage becomes universal, food stamps could be done away with and the individual should be able to get his quota of subsidised foodgrain by merely showing one's UID card (and verifying the same biometrically). This would largely eliminate bureaucratic interference in the distribution system.
Quality specifications for foodgrains can be fixed in advance so that there is uniformity in quality of foodgrains being supplied in various areas.
idontspam - 29 March, 2010 - 11:30
Food stamps is the way to go. It takes away the burden of procurement, storage & distribution which is not exactly an inexpensive effort and not to say introduces more points of corruption than printing a food stamp. All the money saved on the distribution can be put into a proper technology & enforcement of the food stamps.
Like Manish says, with technology the stamp/coupon will become an electronic transaction like your credit card without the need for a physical coupon. It removes the entire corrupt chain. Any retailer could validate the ration maintained at the central server via his POS teminal and disburse the ration. He can claim his subsidies in the backend from the govt.
You want to make it more inclusive? Allot ration franchise to kirana shops instead of chains especially in tier 2 & 3 cities. Enable them with mobile authentication devices so they can distribute. There isnt a village in the country which wont have a kirana store and they will be more than willing to be a ration franchise.
Entire PDS has collapsed, says SC panel
murali772 - 29 March, 2010 - 07:10
The sale of foodgrains through the public distribution system to poor families throughout the country at highly subsidised prices is stinking of corruption, hoarding and black marketing, the Supreme Court appointed central vigilance committee said in its damning reports.
After touring various states and scrutinising the operation of PDS system through fair price shops, the committee headed by retired Supreme Court judge Justice D P Wadhwa used "enforcement lax, collusion between officials, investigating agencies, dealers, wholesalers and other vested interests" to describe the Karnataka set up, alongwith equally damning descriptions for the set ups in other states.
But the most damning comments were reserved for Delhi, the national capital. Apart from terming the PDS as inefficient and corrupt, the committee said in its report to the apex court that "there is largescale diversion and black marketing of PDS foodgrain".
Having read the report, the Bench asked Mr Colin Gonsalves, Senior lawyer and a member of the Committee, to suggest whether there could be an alternative to the existing PDS system or if it could be made efficient through corrective measures.
For the full report in the TOI, click here.
Year after year, various panels/ committees have been submitting similar reports. All the same, the situation continues to deteriorate by the day. Many eminent economists have from years been suggesting the 'food stamps' system adopted successfully in many countries, which will reduce the scope for corruption to just in the matter of identification of the eligible sections of the population. Whatever the government may do, it can never possibly achieve the efficiency levels of say a BIG BAZAAR in the procurement/ distribution chain. So, why not leave the job to them, and work on the 'food stamps' suggestion? The poor will benefit from the right quantity as well better quality.
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