The National Federation of Indian Women (NFIW) fears that the government plans to do away with the public distribution system (PDS) and move to cash transfers in lieu of foodgrains to the poor through the proposed National Food Security Bill.
Demanding that the proposed Bill provide for universal entitlements, decentralised production and procurement, the NFIW has criticised the approach for targeted PDS and cash transfers.
Referring to reported lack of funds with the Food Corporation of India (FCI) for procurement of grains, NFIW general secretary Anne Raja said it was nothing but a “calculated move” by the government to create a situation of non-availability of foodgrains to facilitate cash transfers.
Already pilot programmes on cash transfers for distribution of foodgrains were on in parts of Delhi.
Ms. Raja views the government’s move to ask the Unique Identification Authority of India to examine the prospect of direct transfer of food subsidies as a step towards cash transfers.
“By introducing such provisions in the proposed bill, the UPA was clearing the way for cash transfers, instead of assuring foodgrains and other essential commodities to people through the PDS,” she said.
Meanwhile, the Food Ministry on Monday clarified that the Centre would provide all financial support to the FCI. “There is no financial crisis at the FCI,” it said in a release.
# No financial crisis at the FCI: Food Ministry
# Centre to provide all financial support to the FCI.