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

How corporates can nudge real change

The Business Of Business Is (Not) Just Business: How Behavioural Tools Can Drive Real Change Edited by Sutapa Banerjee, with Foreword by Nadir Godrej HarperCollins, 336 pages, Rs 699  

India stopped jailing people for paperwork. Now comes the hard part

A small pharmacist in Rajkot neglects to change a notice in his store under a little-known clause of a public health law. This was not only a non-compliance matter, but also a criminal offence, and a jail sentence was the punishment under the old system. Not a fine. Not a warning. Jail. Now scale

How to make our cities climate-resilient

Indian cities are growing at a pace that our infrastructure and climate can no longer sustain. This rapid urban sprawl increasingly strains urban systems, overshadowing the severe environmental fallout produced in its wake. The repercussions include Urban Heat Island Effect (UHI), Urban Floods, and many mo

Trump’s China setback pushes US to woo India

A week after Donald Trump’s visit to China – the first by an American president in nine years, US secretary of state Marco Rubio arrived in India on May 23 on a four-day visit aimed at resetting Washington DC’s relations with New Delhi and attending the third Quad ministerial meeting.

EU–India FTA 2026: A high‑stakes prescription for Indian pharma and healthcare

India’s pharmaceutical industry stands as one of the world’s market leaders of generic pharmacy with market valuation of USD 50 billion in 2026. Characterised by high volume, low-cost generic manufacturing, with an annual growth rate of 10-12% primarily propelled by exports and domestic demand,

Legends, vignettes and tales from the freedom movement

Robin Hood of Kathiawar and Other Extraordinary Stories from India’s Freedom Movement By The Paperclip  HarperCollins, 348 pages, Rs 499  





Archives

Current Issue

Opinion

Facebook Twitter Google Plus Linkedin Subscribe Newsletter

Twitter