KILLING 'Public distribution system'?

Public distribution system (PDS) is one of the largest and oldest welfare scheme by Indian government. Though corruption and siphoning of ration is major issue regarding PDS but the immense benefit to millions of poor people cover the former. In fact this scheme is a hope, an hope for living to millions of poor people.

Since 1991 Liberalization, corporate lobbies and Bretten wood systems (IMF & WB) are pressurizing government to end the subsidization system and move towards cash transfer system. And its seem the present government is also not interested to follow the Welfare State idea of constitution.

Shunning its responsibility in the name of reduring corruption, government is moving towards destroying PDS and replacing it with Cash Transfer. No, doubt Latin America has seen a quite a success in cash transfer scheme, but then India is not Latin America.

The Main hurdle in India for cash transfer scheme is unreliable data and details about the intended beneficiaries, which will lead to massive social exclusion. Secondly Rs 1000/- which government intends to give instead of food, in hands of beneficiary will be practically get diverted to repaying debt or to alcohol consumption. Thirdly, with day by day increasing inflation the Rs 1000/- will merely be a token amount but in case PDS it is protected by inflation. And then the problem of shortage of food, what poor people will do with cash when they don't have food to buy or at least affordable food to buy.

Cash transfer will help in cases like pension and student fee reimbursement and other schemes where end requirement is cash. But replacing food with cash will only lead to more social exclusion and social problem instead of solving the question of providing food. The cash transfer scheme instead of PDS clearly shows the social responsibility shunning attitude of the present government.