Delhi government’s proposal for cash transfer instead of providing rations through public distribution system (PDS) has no takers in the city's slums. “Ninety – nine percent of Delhi’s slums want an improvement in the PDS system and not cash transfer,” said a new survey.

This report came in the wake of Delhi government’s proposal for replacing PDS with direct cash transfer to beneficiaries. The government scheme is likely to be announced very soon.

The beneficiaries of the PDS responded in the report, “We don’t want cash, we need ration. Presently we have at least something for a month at home that we can eat even with chutney. It is very difficult to purchase it from market.” However, fifty percent of the respondents were not aware of cash transfer schemes. The concept was explained to the slum population by the Ration Vyvastha Sudhar Abhiyan along with Parivartan, Bhalswa Lok Shakti Manch, Jagori, Chintan, the Association for Social Justice and Research and the Centre for Advocacy and Research. 

Majority of them felt the cash given might not be used for purchasing ration. “Around 84 percent respondents felt that inflation would soon reduce the value of the cash they received and they would not be able to purchase the grains,” the report noted. The overall financial burden on card holders comes to Rs. 1008. 47 per month, the study said.

“Once the amount is fixed for the scheme, it will remain for years,” said Deepa Sinha, member, Right to Food Campaign.

The survey is based on a sample of 593 ration card holders surveyed around 14 areas of jhuggi-bastis, resettlement colonies and unauthorised colonies of East Delhi, South Delhi, North-East Delhi and North-West Delhi.

The respondents also pointed out gross irregularities of the PDS. “85 percent of the card holders were drawing ration against the ration cards. But the quantity and quality of ration was arbitrarily determined by the ration shop keeper,” the survey added.

According to report, “Of the 120 complaints filed by cardholders in 66 percent of cases there was no response and no action was taken.”

The NGOs also complained that the government is slowly canceling the ration cards of people. “The government has earlier cancelled 65,000 ration cards and before that they cancelled 1, 72,000 ration cards. There are many who did not get their ration cards after renewal,” said Santosh, member, Ration Vyvastha Sudhar Abhiyan.

Delhi government is currently conducting a pilot survey on 100 people in Raghuvir Nagar from January to June this year. The government has deactivated BPL card and is instead transferring cash to the beneficiaries.

“Replacing PDS with cash transfers is fraught with problems. It does not solve many of the problems currently being faced by PDS (such as identification of poor households) it also does not ensure food security, does not protect the poor from inflation and is difficult to implement in the absence of a wide network of banks,” Deepa Sinha added.

Ration Vyvastha Sudhar Abhiyan now wants to put pressure on government through meetings to streamline the public distribution system. “They should take view of common man before taking any decision,” said Vimla of Mahila Pragati Manch.

In 2009, SEWA Delhi conducted a survey which said that sixty percent prefers cash over ration given by the PDS. However, Ration Vyvastha Sudhar Abhiyan criticised the survey and said there is nothing concrete in the survey to suggest people want cash instead of ration.