Re: Fwd: How Chhattisgarh transformed its corrupt ration shops
Unfortunately people without understanding the concept of cash transfer - Aadhar and food security bill [which is yet be be put before the parliament] make loose statements.
In 2009, two IIM professors presented a report on chemical fertilizer subsidies issue and finally recommended to continue the present system of subsidy given to industry. This report was submitted to PM also. I sent my counter on this to the two professors and later submitted to PM. I was talking since 2001 -- this was mentioned in agriculture black paper, which was released in the Assembly press gallery -- also presented at a meeting organized by CSA on dry-land agriculture for planning commission. I also later included this in my submissions to 11th planning commission & 12th planning commission as well. My proposal was to give subsidy directly to farmers instead of industry. This was accepted and the Finance minister in his budget speech said that government is planning to give direct cash to farmers for chemical fertilizers and also to kerosene & gas under PDS. The same was informed to me by the Ministry of chemicals & fertilizers. Also mentioned that there are looking at how this to be executed, etc. The basic issue in all these three subsidized products is that real people are not getting the product but somebody else are getting. This is more than 30%. So, with the Aadhar linked direct cash transfer this wastage in subsidy at all India level could be brought down and at the same time benefit the real people. If we look at Andhra Pradesh people holding white ration cards and getting benefits include crorepathis -- around 30 to 40%. In this retail shops/ration shops are holding large number of illegal white ration cards.
In the case of the new food security bill, this bill consolidates all the programmes which are hither to running under different ministries. This includes PDS [ration card will be issued to eldest women in the family], Anganwadi programmes, nutrition programmes to childred upto 14 years, migratees, destitutes, etc. This also includes locally produced ffod grains go in to the system. This way we can reduce the wastage in transport and transport costs, etc. As a result under PDS government proposed to give rice at Rs. 3 per kg, wheat at Rs. 2 a kg and coarse cereals -- grown under rainfed -- at Rs. 1 per kg [this is new addition helping dry-land agriculture]. Also, each state has to define BPL groups in rural and urban. Like this there are large number issues.
Dr. S. Jeevananda Reddy