That is the precise point. In AP and some other states PDS is working but for some states like WB, UP PDS is not working due to huge leakages in the system. The same leakages will be there in FSB also. So where PDS is working do we really need another Govt. scheme?
The mid day food scheme in Karnataka Akshaya Patra (??) has worked very well, that needs to be tailored and used in other states also.
Problem in UP is PDS will not get the poor people votes to Congress which will anyway go to Mayawathi.Electorate is becoming a smart ass and populist schemes need not necessarily bring votes Bihar for instance(NREGA did not bring votes in Bihar)add to that congress has pathetic part organization when compared to other parties
Regarding economic impacts on wider scale, I can not judge it just yet before May-June '12. Though its a burden picked up at wrong time for sure.
On political front, implementation of bill will take time. So its not like you will have fruits on tree in just 6-8 months. Hence I dont see early election calls from Raajmata. I can be wrong.
About UP, I think Cong will win more seats in UP LS polls than what it will earn in state elections; it does not necesserily means majority.
Who will explain this to to the ruling party. They are going full throttle with plans and policies which are better suited to the 70s. When you have ancient advisors to Madam G like Pranab Mukherjee, Digg Baba, and the like then you cannot expect new ideas.
Food Security Act – an idea whose time is long overdue?
The cabinet has reportedly cleared the Food Security Bill for introduction in the winter session of Parliament. With this, another round of spirited, but often vitupirative debates has started. For a country that has the largest proportion of malnourished children, the tenor of the opposition is startling, and in case sympotomatic, a scary reflection of middle class sensitivities of the day.
Let us look at some of the objections to the Act.
1. It is too expensive, and we cant afford it.
This is the oft-repeated argument, that the Bill is fiscally ruinous and there is no way it can be afforded. And what is the estimated cost to the fisc? Well, depending on who is doing the maths, it ranges from 30,000 crores to 1 lac crores. Lets take the upper boundary. And as a perspective, compare this against the subsidy on oil (estimated to be touching 60000 crores this year), or indeed, taxes foregone on account of exemptions (mind you, distortionary exemptions, not tax rate rationalisaitons) add up to 6-7 times that number.
Are sops to the middle class of India and vested corporate interests (which is what most exemptions are for) more critical than ensuring a healthier new generation?
2. PDS is too inefficient, and cant be trusted to deliver
An old chestnut, but continuing as a red herring! PDS has been historically inefficient, but has made rapid progress in recent years. Driven by states like Tamil Nadu and Chattisgarh, and bolstered by measures like RTI and innovations in technology, PDS wastages have been reduced drastically. Not just in the exemplar states mentioned above, but almost across the board. The Centre’s showpiece UID project is a prime variable to be used to increasae efficiencies even further! The Food Security Bill should be used as an opportunity to carry out more innovations in delivery, not throw up hands in depair!
3. Cash transfers and food stamps are more “efficient” options
Somewhat similar to arguments made in support of “fortified biscuits” in lieu of hot meals in the mid day meal programme for school kids. Cash transfers are a great idea, but not for solving the issue of access. Food security addresses issues of both affordibility AND access.
4. It will be beyond India’s means in terms of availability terms
The biggest non sequitor that is peddled about. The total requirement, and in these programmes (just as in NREGA), actuals always come out lower than estimates as larger sections of the populace migrate to superior foods (and superior jobs). The estimated foodgrain procurement for the Food Security bill is 60 million tons, that is exactly the ballpark number being procured today. Without even accouting for a natural growth in procurements that has been over the trend growth in agriculture itself.
At a basic level, it is fundamentally about what sort of country do we want to build. Will we as a society agree to a stunted growth of our new generation? Or will we do all that we can (and some more, if required) to reverse that trend. At the cost, if necessary, of a few less exemptions on real estate projects masquerading as SEZs.
1.There is no subsidy in petroleum products. We the citizens of India should recognize this truth once and for all. Any product which is taxed nearly 60% and then the Govt. calls it subsidised, we are being conned to the nth Degree. GOI has unprecedented indirect tax collection of 1,83 lakh crore due to the import duties on petroleum products.
2. If PDS has been overhauled in 2 states why cannot the Govt. apply it to ther 28 states and see that the needy get the subsidised food. Why do we need FSB on top of PDS. Simple reason revamping PDS will not earn brownie points with the electorate- translate will further sunny boys political career.
3. Delhi wants to try out cash transfer. Let them do it and then see the results. It is a small state reasonably well managed, the results will be out very soon. But no Madam and Jholawalaas want FSB so they will get FSB.
4. What about the food grain production in the year of poor rainfall? Where do we get the grains from then-- only costly import will be the solution. What has been done by the GOI to unleash another Green revolution in the eastern part of the country which has no problem with water for irrigation and a very fertile soil. Agriculture as a sector is growing at around 3% Year after Year but consumption is growing faster, where do we get the grain from say in 3-4 years time.
The above article is complete bumkuss, hurriedly drafted to dish out support to Madam and her cronies.
Same Pranab will fall on face when he'll not be able answer promises on fiscal & current deficit. No surprise if 2012-2013 spending overtakes that of last year's record.