The Prime Minister’s Economic Advisory Council Chairman, C Rangarajan, today said the scope of food security and the public distribution system could be expanded to people above the poverty line (APL) to make available subsidised foodgrain to all at ration shops.
“The public distribution system (PDS) has been present for the last six decades and there are two issues around it — its scope and efficient functioning. We are focusing on below the poverty line (BPL) households by offering 35 kg rice/wheat per month at Rs 3 a kg to each family. Another alternative is to give 30 kg foodgrain a month to the BPL households and 15 kg a month to the APL families. This will ensure that all households will be assured of some minimum availability of foodgrain,” Rangarajan said at a conference of food secretaries here today.
He said if APL families were included in the food security scheme, the total foodgrain requirement would amount to 50 million tonnes (mt). “This is feasible in the context of procurement in the recent years, which has been in the range of 55-59 mt,” he said, adding that the other approach to food security was to focus exclusively on the BPL families, though there are disputes regarding the number of BPL families.
Planning Commission Deputy Chairman Montek Singh Ahluwalia, who was present at the conference, explained that as of now, 65 million BPL families are eligible for PDS but the number increases to 82 million if population and growth are adjusted for between 2004 and 2011.
“With an average procurement of 53-54 mt, even if we provide for relief programmes like the mid-day meal scheme, ICDS and 35 kg foodgrain to the 82.5 million poor people, we will use 42 million tonnes of grain. This means the BPL will cut into the APL. Hence, a new system for food security needs to be looked at,” said Ahluwalia.
Meanwhile, Ahluwalia said that monetary policy was not a constraint on growth right now and the Reserve Bank of India (RBI) should marginally adjust its monetary policy. “”I think RBI should make whatever adjustments it feels necessary marginally,” he added.