Survey finds food leakages in PDS too high

Pointing out that foodgrains diversion from ration shops was "too high", the Economic Survey today said supply of rice and wheat will have to be doubled if the proposed National Food Security Act for the targeted group is implemented with the current delivery mechanism.

Quoting recent research reports on foodgrains diversion, the Economic Survey said: "No matter where the exact figure lies between 40 and 55%, the fact of the matter is the leakage that currently takes place is far too high."

"Once we give a legal guarantee to people about the food that they are to receive, if we try to deliver on this promise using our current delivery mechanism, we shall have to send twice the targeted amount of grain towards the targeted population.

In 2009-10, the total offtake of foodgrains from ration shops was 42.4 million tonne.

Prime Minister Manmohan Singh had yesterday said that the government is trying to introduce the proposed food bill in the ongoing Budget session of Parliament. The draft bill is under preparation.

The survey mentioned the recent research reports by Reetika Khera and by Shikha Jha and Bharat Ramaswami that has come out with the estimates of foodgrains diverted through ration shops.

According to the Khera report, over 40% of rice and wheat allocated to the poor was diverted in 2001-02. The report prepared by Jha and Ramaswamy estimated diversion to the extent of 55% in 2004-05.

The government provides a total of 35 kg of rice and wheat per month to 6.52 crore families living below poverty line (BPL) at Rs 4.15 per kg wheat and Rs 5.65 per kg rice.

It supplies a minimum of 15 kg of foodgrains to 11.5 crore families living above poverty line (APL).