Chhattisgarh CM opposes cash subsidy transfer; writes to PM

In a letter to Prime Minister Manmohan Singh, he said any changes in the proposed system should only be done with the state governments' consent.

"There are lots of problems in implementation of cash subsidy transfer under PDS. In my view, fair price shops under PDS are the only viable and convenient option for access to foodgrains in rural areas in the State.

"Financial inclusion and availability of IT infrastructure are preconditions to any scheme of cash transfers. There are substantial problems in the State on both accounts. It would also be difficult to fix the monthly cash subsidies in view of fluctuation in market prices," he said.

Finance Minister P Chidambaram had said on Tuesday that food and fertiliser subsidies were not sought to be covered under the direct cash transfer scheme being implemented from January one.

The Chief Minister said the system is also vulnerable to misuse of cash subsidy amount by the male heads of the households on purchase of non-PDS commodities which would defeat the very purpose for which the subsidies are proposed to be transferred.

"Any changes in present PDS system should only be implemented if the same result in better convenience to the beneficiaries. Also, since implementation of PDS at state level is the responsibility of State Government, any changes in the system should be done only with the consent of State Government," the CM of the BJP-ruled state said. (MORE)