Just a day before the National Advisory Council (NAC) meets to discuss the universalisation of public distribution system (PDS) under the proposed food security act, the Prime Minister’s chief economic advisor, C Rangarajan has suggested a compromise formula for making the proposed Bill workable.
Addressing two-day meeting of state chief secretaries to discuss reforming Public Distribution System (PDS), Rangarajan said ‘those who are in favour of universalisation of PDS feel that the distinction between BPL and APL is very thin and therefore we should cover all households’.
However, he noted that despite the desirability of such an arrangement, it is a ‘impossible task’ given the present level of production and procurement of foodgrains. Alternately, he suggested that people above the poverty line can also be considered for the UPA government proposed food security scheme under which subsidized foodgrains will be available at ration shops as a legal right.
?Another alternative that one can think of is to give to the BPL households 30 kg per month and to APL households 15 kg per month. This will in a way ensure that all households will be assured of some minimum availability of foodgrains,? Rangarajan said.
He noted that there would have to be different prices for BPL and APL households in order to keep the subsidy burden under control.
The Food Security Act as proposed by the UPA government assures essential foodgrains such as rice and wheat at Rs 3 a kg to BPL families as a matter of legal right. However the quantity of foodgrains to be allotted under the act is yet to be finalised.
Meanwhile, echoing similar views, agriculture minister Sharad Pawar also said at present the government through Food Corporation of India (FCI) procures close to 30% of the total rice and wheat production in the country.
?We can not go beyond the current level procurement as any increase in procurement would result in increase in prices,? Pawar told reporters.
Meanwhile, after the two days conference of food secretaries, it was agreed upon to strengthen the existing PDS through various measures such as delivery of foodgrains to fair price shops for a particular month by the ned of the previous month, revised identification of PDS beneficaries, doorstep delivery of foodgrains and allowing fair price shops to sell non-PDS items.Besides, the conference stressed upon use of IT in PDS on a priority basis through computerisation of the TPDS network.
Pawar asks Nafed to review sacking of MD
The agriculture minister Sharad Pawar on Tuesday strongly objected to the removal of managing director of Nafed by the board last week, asking it to reconsider the decision. ?It is not proper for the board to remove a person who have been appointed by agriculture ministry,? Pawar told reporters, adding that it was unfortunate that such a incident has happened and he is looking into the matter. FE has reported on Tuesday that the agriculture ministry and Nafed are on a loggerhead over the ‘sacking’ of CV Ananda Bose, managing director of the federation.