In an interview on CNN-IBN, Planning Commission Deputy Chairman Montek Singh Ahluwalia on Thursday said he favoured the suggestion that the subsidy meant for families should be transferred into the bank accounts of women.
“Where the purpose of the transfer is linked to the benefits of a family, be it nutritional benefit, be it family benefit, it would be much better to send it to the mother.”
There might be a problem in case there was no female in the family, he said, adding “by and large, we ought to give to the female head of the family in the household”.
Answering questions on foreign direct investment (FDI) in retail, he said it would help in modernising the retail to the benefit of farmers and consumers. Allaying fears the introduction of cash transfer and allowing FDI in multi-brand retail would result in dismantling of public procurement of foodgrain, he said, “The minimum support price has nothing to do with FDI in retail. We are really trying to modernise retail.”
He assured that the government would continue to procure and supply foodgrains under the existing public distribution system. About the huge US farm subsidies, he said the American government subsidises farmers not because their marketing is inefficient but because their agriculture is uncompetitive at the prices which their consumers are willing to pay. Ahluwalia said the US subsidies agriculture heavily to keep the consumer prices low and at the same time have high farmer income. In case of India, he said, the government wants to keep consumer prices as low as possible and raise farmers income by squeezing inefficiency in the middle. According to him, the US does not have inefficiency in the middle and the European agriculture is also only competitive if it is subsidised. About the apprehensions that in the absence of good roads and access to electricity in remote areas, the foreign players would not be able to set up back-end infrastructure to improve logistics, Ahluwalia said, "We are spending a lot on roads and power."
