Indian households purchased much more food items through the public distribution system (PDS) in 2009-10 than they did five years ago, the 66th National Sample Survey has indicated, raising doubts over the effectiveness of the government’s new direct cash transfer system over a large base.
Greater penetration and higher use of the PDS will make it difficult for the government to eventually deliver the Rs 75,000-crore food subsidy to its eligible beneficiaries.
“Cash transfers are very limited in nature. I am not sure if they can replace PDS”, said SR Hashim, former member of Planning Commission.
Rice consumption, for instance, rose 23.5% in the rural areas and 18% in urban areas during 2009-10. The corresponding rise in 2004-05 was lower at 13% and 11% respectively.
Experts attributed the rise in usage to a shift to the better universal PDS system in a few states and improvement in the distribution system.
The relative rise of consumption through PDS was a result of states like Tamil Nadu, Chhattisgarh, Karnataka, and Andhra Pradesh opting for universal PDS, said Ravi Srivastava, JNU professor. “So people accessing PDS went up substantially after 2004-05,” he said, adding, Madhya Pradesh and Chhattisgarh worked on their distribution system using information technology.