Business Standard

Andhra Opposes Revamped Pds

Image

BSCAL

The Andhra Pradesh government is opposed to the revamped public distribution system (PDS) in its present form since it fell short of actual requirement and looked pale in comparison to the subsidised rice scheme already being implemented in the state.

We have urged the Centre to extend the benefits of the new scheme to the entire 1.12 crore families now being covered under the states subsidised scheme instead of limiting it to 34 per cent population in under the below poverty line (BPL) category, officials said in Hyderabad yesterday.

The crux of the dispute lies in conflicting figures of population below poverty line. Based on the report of the Lakdawala committee, set up by the Planning Commission, the Centre has fixed 34 per cent of states population as being below poverty line as against the accepted national BPL figure of 37.27 per cent. However, 1.12 crore families constituting about 70 per cent of total population were presently enjoying the benefits of subsidised rice scheme, being implemented in the state since 1983.

 

Under the state scheme, each family under white ration card category gets a monthly quota of 20 kg of rice at Rs 3. 50 per kg amounting to an annual subsidy burden of Rs 700 crore. While the restructured central PDS provides for 10 kg of foodgrain per family every month at half the central issue price. However, the number of beneficiaries should not cross the BPL arrived at by the Centre.

This scheme is an unattractive proposition for us since we have pioneered a much beneficial programme covering wider net, sources said.

If AP were to be included in the revamped PDS, it has to prune the present number of beneficiaries, an exercise considered politically sensitive. The subsidised rice scheme has always been a delicate poll issue in the state particularly for the ruling TDP.

Despite the recent hike in the price from Rs 2 per kg to Rs 3.50 and scaling down the monthly quota from 25 kg to 20 kg, the annual subsidy burden is estimated to be around Rs 700 crore.

We are determined to continue our scheme though it is a widely known fact that there are several bogus beneficiaries. We hope to bring it down once the multi-purpose cards are ready, official sources said. They attributed the highly inflated and scandalous figure of beneficiaries (accounting for 70 per cent of total population) to erroneous policy that makes white ration card mandatory for social benefits like admissions to government hospitals and social welfare hostels and even passports.

Asked how the cash-strapped state government could afford to stay away from the new central scheme just because there was discrepancy in BPL figures, the sources quipped But who will bell the cat?

Don't miss the most important news and views of the day. Get them on our Telegram channel

First Published: Jan 04 1997 | 12:00 AM IST

Explore News