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29 December, 1997

PDS failed to keep out the affluent 

Ashok B Sharma  
New Delhi, Dec 28: The UF government's most populist commitment of launching the targeted public distribution system (TPDS) only for the families below the poverty line (BPL) met with serious dilutions as it failed to phase out the affluent class from the list of beneficiaries.

The common minimum programme (CMP) of the UF government categorically stated that the public distribution system would only cater to the needs of the targetted families and would distribute all essential commodities, apart from foodgrains and the supervision of the fair price shops would be left to the elected panchayats and nagar palikas and not the state governments. But both these provisions had to be modified as a result of strong opposition from the states. Centre, however, selected only foodgrains for distribution under the new scheme.

Even the TPDS in its present form met with criticism from states who are demanding a hike in grain quota to 20 kg per family per month from the present 10 kg.

In the background of the TPDS fully catering to the needs of the poor, the revamped public distribution system (RPDS) which was covering about 1775 blocks of hilly and remote areas of the country was disbanded.

Many states were not satisfied with the present level of allocation earmarked for them based on the previous year's lifting. However, the Centre, would sove this contentious issue by allowing states to lift additional amount by paying the central issue price rather than the economic cost.

But the issue raising the present level of food subsidy by Rs 2,000 crore for accomodating hike in grain quota for the poor remained unresolved with differences persisting between the finance minister, P Chidambaran on one side and Left parties and the Food Minister on the other side. Even the recommendations of the group of ministers to hike grain quota to 15 kg in lieu of 20 kg also fell through.

In his Independence Day address, the former UF Prime Minister H D Deve Gowda announced that only foodgrains would be supplied through TPDS at half the issue price. Accordingly after much debate, the estimates of the poor was worked out using the Lakdawala formula.

But in order to avoid the mounting subsidy bill on the exchequer, the Centre resorted to increase the isuue price of foodgrains consequent on launching of TPDS on June 1, 1997.

The Food Minister, Raghuvansh Prasad Singh has expressed his dissatifaction over the selection of BPL families in states and expressed his apprehension over the leakage of TPDS foodgrains to open market and the consumers being supplied with poor quality of grains.

He had written the chief ministers to consitute vigilance committees at all levels benning from the panchayats.

To see that proper justice was done to the consumers, Singh initiated certain amendments to the Consumer Protection Act which was approved by the cabinet, but could not be placed in parliament. The amendments to BIS Act is also under review.

On the front of foodgrain procurement, the government initiated the idea of decentralisation of procurement so as to enable the FCI and other procuring agencies to procure in food surplus areas of each state and distribute in the neighbouring deficit regions.

But this idea is yet to take shape as amendments to FCI Act was awaited.The minister also wanted that the the amendments to the FCI Act should be designed to check damages, fix accountability at all levels and reward performance.

In the early part of UF rule sugar was decanalised for export. But the government did not come out with any definite long-term sugar policy, It appointed Majan Committee in March 1997 to recommend a long-term policy.In absence of a clear policy, the government indulged in liberally issuing licences for setting up new sugar units after its attempt to delicence sugar industry proved failure. The cane zoning area was modified to 25 km radius. Most of 218 licencees are yet to set up their units.

The SDF rules have been amended for launching a scheme for giving short-term loans to sugarcane growers. The government has created a buffer stock of 5 lakh tonne of sugar for one year with effect from January 10, 1996. This was extended for another year with an additional stock of 5 lakh tonnes.

Copyright © 1997 Indian Express Newspapers (Bombay) Ltd.



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