Sunday, 1 February 2015

1-Feb


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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