Tuesday, January 18, 2011

Universal PDS

The criticism of the Rangarajan Panel for diluting the NAC recommendations is unwarranted. A policy of the government has to factor in various constraints concerning procurement, storage, and distribution, mere paper work is insufficient. The provision of the Rangarajan panel to factor in 10 % buffer zone over and above the poverty figures of the Tendulkar committee is worthy of appreciation as it has taken into account the plight of the borderline poor for the first time. It should not be forgotten that even the Supreme Court directed the government to target the BPL population first and then with the passage of time and availability of resources extend the coverage to the APL population. Though a targeted PDS is full of pilferages it is better than a universal PDS with insufficient grains as in that case the benefits would definitely be disproportionately cornered by the affluent sections. The government should gradually expand the scope of the PDS eventually aiming for a universal coverage as and when sufficient grain stocks are available till then other options such as food coupons be introduced to minimize leakages in the PDS.

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