PDS Vs DBT - a new report
A new study by Ashok Gulati (former chairman, CACP) and
Shweta Saini, based on latest NSSO data, has following observations :-
1. In 2011-12,
46.7 percent or 25.9 MMTs (million metric tonnes) of grains (rice and wheat)
which was released through PDS did not reach intended beneficiaries.
2. Chhattisgarh
was the best performing state with 0 percent diversion, followed by Andhra
Pradesh and Tamil Nadu with 11.1 percent and 12.2 percent leakages
respectively.
3. The worst
performing state was Manipur where 97.8 percent of grains failed to reach the
beneficiaries. Leakages in Delhi was 82.6 percent and in Gujarat, pilferage was
72.2 percent.
4. Shifting
the support to the poor from highly subsidised price policy to Direct Benefit
Transfer (DBT) through Pradhan Mantri Jan Dhan Yojana (PMJDY) dovetailed with
Aadhar.
5. The move
could result in savings of up to Rs. 33,087 crores annually in food subsidy
bills.
6. DBT is the
best global practice which can -
i.
plug leakages
ii.
reach vulnerable segments of population
iii.
not interfere with food market
iv.
results in savings to the Centre
v.
give a better deal to consumers
7. PDS
operates through a network of 5,00,000 Fair Price Shop (FPS), distributing
around 50-55 MMTs of grains annually.National Food Security Act, 2013 also
relies on FPS to deliver food security to 67 percent of population distributing
about 61.4 MMTs of grains.
8. PDS suffers
from inefficiency owing to high leakages .
9. Five States
- UP, MP, Bihar, Maharashtra and WB, which accounts for 60 percent of India's
poor, accounted for almost 50 percent of total grain leakage. PDS suffers on equity
too.
10. Major
beneficiary of PDS are people from states that have smaller number of poor. In
a way, PDS helps the better offs more than the real poor of the country.
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