THE Public Distribution System (PDS) in Tamil Nadu has a long and chequered history. Despite charges of corruption and irregularities, the system has succeeded by and large in protecting the vulnerable sections of society in times of food scarcity and rising prices.
The PDS in the State does not take income as a criterion; it covers "all the needy people". Policy Note 2005-2006 of the Cooperation, Food and Consumer Protection Department said that under the "Universal Public Distribution System" in operation in Tamil Nadu, rice has been sold to needy people "at a price much lower than the BPL [Below Poverty Line] prices fixed by the Government of India under the Targeted Public Distribution System". "Food security is thus ensured to all sections of the people," the note contended.
Successive governments in Tamil Nadu, despite their political differences, have stalled World Bank-driven efforts of the Union government to put in place an economic criterion for eligibility to receive subsidised foodgrains and restrict its supply to people classified as `below poverty line'. (In Tamil Nadu, 35.03 per cent of the 61.77 million people are estimated to be in the BPL category.)
Policies on public distribution have always caused political controversies and made or unmade governments. The Dravida Munnetra Kazhagam's first electoral victory, in 1967, was attributed mainly to its promise to supply rice at one rupee a measure (1.6 kg).
The DMK's famous slogan was: "Three measures a rupee is our aim, but one rupee a measure is certain." In the Assembly elections in May, the DMK's promise of 20 kg of quality rice to all card-holders at Rs.2 a kg apparently turned the tide in its favour in a close fight with the ruling All-India Dravida Munnetra Kazhagam (AIADMK). On assuming charge as Chief Minister on May 13, the first order M. Karunanidhi signed was to keep this promise.
The scheme is likely to benefit 15.3 million card-holders, who were until now paying Rs.3.50 a kg. Karunanidhi's first estimate put the increase in the subsidy cost at Rs.540 crores a year.
"In a State whose annual budget exceeds Rs. 35,000 crores this is not a huge amount," he had said at an election-campaign meeting. Officials, however, felt that the subsidy cost could be higher, nearly Rs.1,000 crores, because the low price could lead to increased off-take from the nearly 28,000 PDS shops across the State. (Not all card-holders could collect their entire quota at the previous price.)
A recent note from the Department of Food and Public Distribution to the Cabinet Committee on Economic Affairs suggests a cut in the allotment of foodgrains to States for the PDS and a hike in the issue prices of grain allotted under various categories. The suggestion, for the present, concerns only wheat. In the case of paddy, there is no fear of a production shortfall. Besides, the Tamil Nadu government itself procures rice for the Food Corporation of India and the system has been working well. The fact, however, remains that if the Centre hikes issue prices, the subsidy cost could go up by about 30 per cent.
"In view of the spiralling prices of essential commodities and the growing unemployment, both in rural and in urban areas, the cheap rice scheme should be protected at all costs," said K. Balakrishnan, general secretary of the Tamil Nadu unit of the All India Kisan Sabha. He said the Union Food Ministry's suggestions would only weaken State governments' efforts to provide food security to the deprived sections.
There is greater need now for government intervention to ensure food security, he said. Referring to the assessment that one-third of those affected by malnutrition in the world are in India, he said the Centre was duty-bound to extend the nutritional meal schemes of State governments to larger sections of the people. As such it could not wash its hands of its responsibility to allot more foodgrains to States.
However, he said, the State government should take note of the apprehensions among agriculturists. Although they are happy about the timely release of water from the Mettur reservoir, there is a lurking fear that the open market price of rice may fall because of the `cheap rice' scheme and farmers may not be able to get a remunerative price.
Balakrishnan wanted the government to provide price support through government procurement. He appealed to the government to revive monopoly government procurement in the interest of both agriculturists and consumers.
What gives hope about the continuance of the new rice scheme is the electoral commitment of the government to implement it to benefit marginalised people. Karunanidhi said in a newspaper interview a few days before the elections: "If there is a genuine desire to help people, welfare schemes and development work can be carried out at the same time. In a country like India, where the number of people below the poverty line is huge, subsidies will have to continue until the [benefits of] development schemes reach everyone."
S. VISWANATHANCOMMents
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