Don’t make a Quixotic rush to cash transfer: Dreze

The noted economist points out why the food-transfer options would work better in India as opposed to cash transfers

prasanna

Prasanna Mohanty | June 26, 2010




Jean Drèze is one of those development economists who have gone way beyond classrooms and seminars and helped shape policies. He has worked with Amartya Sen as well as served as a member of the previous National Advisory Council. Drèze shared his views on food security with Prasanna Mohanty.

Are you in favour of direct cash transfer to overcome problems in the PDS?
I don’t think that the system is ready for a transition from food-based transfers to cash transfers. The most needy people are also the most excluded from the financial system. Also, food is more likely to be well used than cash. Food grain is something everyone needs and the PDS infrastructure is largely in place – better improve it than make a Quixotic rush to cash transfers.

Will direct cash transfer in any way harm agriculture production, affect small and marginal farmers or hit our ability to intervene at the time of crisis?
There is no reason why cash transfers would be harmful in this respect, provided that buffer stocks and price stabilisation operations continue. But the fact is that these operations tend to be tied to the PDS, and to that extent, if the PDS were to be replaced with cash transfers, there could be adverse impacts on, say, the procurement system. But this is not the main issue – the main issue is the continuing relevance of the PDS.

What measures are needed to achieve food security?
Food security in the broad sense of nutrition security requires a wide range of interventions, concerned not only with food entitlements but also other requirements of good nutrition such as clean water, health care, effective breastfeeding and so on.

In a country where half of all children are undernourished, there is no quick fix. The proposed Food Security Bill cannot address all these issues, but at the very least, it should guarantee substantial food entitlements, going much beyond existing schemes and Supreme Court orders. The current draft is a non-starter in that respect.

Comments

 

Other News

Centre intensifies preparedness as El Niño threat looms

Amid uncertainty in the southwest monsoon due to the potential impact of El Niño, the government is addressing the situation with comprehensive preparedness, a clear strategy, and strong ground-level action. While challenges remain, the entire system has been activated in advance and is working proa

India is crossing a climate threshold

On June 28, Delhi recorded a maximum temperature of 41.3°C, four degrees above the seasonal normal. But the “feels like” temperature, which factors in humidity, showed more than 51°C. What the body experienced was very different from what the thermometer recorded.  India`

The Geography of India’s inflation

India today finds itself in an unusual position. At a time when geopolitical conflicts, trade fragmentation, and supply-chain disruptions are reshaping the global economy, the country`s macroeconomic fundamentals remain relatively upwards. Growth remains among the highest in the world, inflation has larg

How to listen to the great storytellers that the trees are

The Trees of My Country: A Natural History of India in 50 Trees By T. R. Shankar Raman, with illustrations by Manali Patil Aleph Book Company, 284 pages, Rs 1,499  

This tree in Bihar turns out to be the oldest accurately dated banyan

A banyan tree in Munger, Bihar, estimated to be around 700 years old, has been identified as the oldest accurately dated banyan tree, Ficus benghalensis, using radiocarbon dating, a method that relies exclusively on scientific evidence rather than historical records or local lore. Banyan

Corporate Governance 3.0: What the boardroom of 2030 will look like

The phrase "corporate governance" often evokes images of board meetings, compliance checklists, and regulatory filings. For years, governance was viewed primarily as a mechanism to prevent fraud, protect minority shareholders, and ensure regulatory compliance. However, the events of the last deca





Archives

Current Issue

Opinion

Facebook Twitter Google Plus Linkedin Subscribe Newsletter

Twitter