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The PDS has been criticised for its urban bias and its failure to serve the poorer sections of the population effectively besides corruption. However restricting PDS is not a good step as recommended by a recent high level committee,when access to food is still difficult for wide sections of population, and neither is good its universalized expansion as it is fiscally unsustainable, What we need is reform in current system, for a targeted focus on needy: 1. More fair price shops in rural areas. 2. Decentralized procurement and distribution. 3. Strengthened vigilance, use of ICT etc 4. The idea of the food stamp scheme must be tried out More ideas are welcome @all@MD47
@citizen What you have mentioned are good points But what about msp? I was reading an article in yojana (Jan) about green revolution(genesis of msp,PDS)....it was really a good article
Many scholars are of the view that msp should be gradually replaced by cash transfers but some like amartya sen n dreze are of the view that it won't b a pragmatic step
Also I read an article that argued for expanding the ambit of PDS....coarse cereals for nutrition I think this can be included as one of the points in PDS reforms
Regarding MSP: Allegations of MSP distorting resource allocation, as with rising incomes there is a shift in food consumption pattern, however MSP on wheat and rice distorts the demand supply balance, besides building up huge stocks which go waste. Procurement successful mainly in rice and wheat, that too only in a few states like Punjab, Haryana, Andhra Pradesh etc, benefitting big farmers. On the other hand in eastern belt farmers do not get benefit of MSP. So, FCI should hand over procurement of wheat and rice to states of Punjab, Haryana, A.P etc ,this was recommended by Shanta Kumar committee as these states are already doing well, besides alternatives such as income support, cash transfers, food stamps may be tried out in these regions. On the other hand, we need to focus on procurement in eastern belt so that farmers get benefit of MSP
Regarding universalisation v/s targeting of PDS: Shortcomings flow from the universal nature of the present PDS, with benefit having been thinly spread over all the beneficiaries, be they rich or poor=> per capita transfer of income is very small
On the other hand shortcoming of targeting=> The administrative costs of targeting have been reported to be high in some developing countries. Many studies have also reported a high percentage of leakages in the event of targeting Also, as argued by Jean dreze: The PDS tends to work better where it is more inclusive – targeting is divisive and undermines public pressure for a functional PDS.
But, effective targeting if it can be ensured by introduction of a more effective Mangement Information System, ICT, end to end computerization, involvement of local communities in vigilance etc is a most welcome step.
Food stamps given to the needy and to the underprivileged by issue of coupons, vouchers, electronic card transfer etc. people can purchase commodities at any shop or outlet. The government would then pay back the grocery shops for the stamps, if food stamps are introduced it would be a targeted public distribution system. Committee name i too cant remember, found food stamp alternative on wiki @MD47
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Comments
However restricting PDS is not a good step as recommended by a recent high level committee,when access to food is still difficult for wide sections of population, and neither is good its universalized expansion as it is fiscally unsustainable,
What we need is reform in current system, for a targeted focus on needy:
1. More fair price shops in rural areas.
2. Decentralized procurement and distribution.
3. Strengthened vigilance, use of ICT etc
4. The idea of the food stamp scheme must be tried out
More ideas are welcome @all @MD47
What you have mentioned are good points
But what about msp?
I was reading an article in yojana (Jan) about green revolution(genesis of msp,PDS)....it was really a good article
Many scholars are of the view that msp should be gradually replaced by cash transfers but some like amartya sen n dreze are of the view that it won't b a pragmatic step
Also I read an article that argued for expanding the ambit of PDS....coarse cereals for nutrition
I think this can be included as one of the points in PDS reforms
Allegations of MSP distorting resource allocation, as with rising incomes there is a shift in food consumption pattern, however MSP on wheat and rice distorts the demand supply balance, besides building up huge stocks which go waste.
Procurement successful mainly in rice and wheat, that too only in a few states like Punjab, Haryana, Andhra Pradesh etc, benefitting big farmers. On the other hand in eastern belt farmers do not get benefit of MSP.
So, FCI should hand over procurement of wheat and rice to states of Punjab, Haryana, A.P etc ,this was recommended by Shanta Kumar committee as these states are already doing well, besides alternatives such as income support, cash transfers, food stamps may be tried out in these regions.
On the other hand, we need to focus on procurement in eastern belt so that farmers get benefit of MSP
Regarding universalisation v/s targeting of PDS:
Shortcomings flow from the universal nature of the present PDS, with benefit having been thinly spread over all the beneficiaries, be they rich or poor=> per capita transfer of income is very small
On the other hand shortcoming of targeting=> The administrative costs of targeting have been reported to be high in some developing countries. Many studies have also reported a high percentage of leakages in the event of targeting
Also, as argued by Jean dreze: The PDS tends to work better where it is more inclusive – targeting is divisive and undermines public pressure for a functional PDS.
But, effective targeting if it can be ensured by introduction of a more effective Mangement Information System, ICT, end to end computerization, involvement of local communities in vigilance etc is a most welcome step.
@MD47
Can u please elaborate "food stamps"
I think a committee(name i'm forgetting) recommended it
Are they related to warehouse concept?
TIA
Committee name i too cant remember, found food stamp alternative on wiki @MD47
I hv written somewhere in my notes