Food coupons may replace ration shops

Fin min considering replacing PDS with food coupons

GN Bureau | February 17, 2010



The finance ministry is considering a proposal to do away with the public distribution system and start issuing food coupons to beneficiaries who can then buy food items from the open market, the Economic Times reported on Wednesday.

Aiming to target subsidies better through a less obtrusive mechanism, the ministry is holding internal discussions on a phased withdrawal of the price control mechanism for food items. It will present its views before a committee set up two weeks ago to look into the restructuring of the public distribution system, the report said.

The proposal is likely to find a mention in the upcoming budget, the report quoted a government official as saying.

The idea of food coupons was mooted in the economic survey for 2008-09. “It may be useful to introduce food stamps/coupons which may be valid outside the PDS outlets once the markets get better integrated. Food coupons will allow the consumers a wider choice,” the survey said.

A road map which will suggest the states in which the proposal will be implemented on a pilot basis is also expected soon.

The PDS provides rationed amounts of food items and other essential commodities at below market prices to more than 10 crore ration card holders through fair price shops (FPS). According to a Planning Commission study released in 2008 only about 42% of subsidized grains issued by the central pool reach the target group.

Comments

 

Other News

Master sculptor recalls the making of the Shankaracharya statue

The Golden Chisel: The Story Behind the Making of Ram Lalla  By Seethalakshmi S. and Rahul Nandan Rupa Publications, 168 pages, Rs 395  

Mumbai’s missing affordable homes

Mumbai’s real estate market keeps growing, yet homeownership remains out of reach for much of its population. Three experts – urban researcher Hussain Indorewala, urban planner Vidyadhar Phatak and developer Kamlesh Thakur of NAREDCO Maharashtra, agree that simply constructing more apartments

Rubio denies US foreknowledge of Starlink restrictions in Ukraine

US secretary of state Marco Rubio has said he was unfamiliar with the Wall Street Journal report suggesting Elon Musk had decided to throttle Starlink services in Ukraine, but rejected claims that Washington had ordered the restrictions to pressure Kyiv.   “There was no

Can AI change India’s breast cancer story?

Breast cancer has become a public-health challenge in India. The greatest opportunity is to find cancers earlier. Artificial intelligence (AI) is opening a new era in breast cancer detection. AI systems can analyse mammograms and other breast-imaging studies, identify subtle abnormalities and assist radi

Farm stability in the time of climate change

Indian agriculture is experiencing significant climate volatility, while the world economy seems to be in a highly volatile situation. Economic indices from various countries show that they need to recalibrate their strategies to withstand economic headwinds. In such a challenging situation, a country li

El Niño threatens India’s Rabi crops

India’s southwest monsoon ended with a 13% rainfall deficit in 2026, its weakest performance in a decade, raising concerns over agricultural production, water security and the upcoming rabi season. With El Niño expected to persist into early 2027, experts warn that declining soil moisture, dep

Upcoming Conferences



-->

Archives

Current Issue

Opinion

Facebook Twitter Google Plus Linkedin Subscribe Newsletter

Twitter