The free grain scheme risks undermining more than the rural economy

The problem with govt's decision lies not with fiscal maths but with how it addresses realities of economics of farming and the income levels of much of India's working population, writes T N Ninan

The decision to discontinue the distribution of free foodgrain under a Covid-related programme has been cloaked in the cover of making grain free under the public distribution system (PDS). So far, the PDS has issued every kilogramme of rice at Rs 3, wheat at Rs 2, and coarse grain at a rupee. The average subsidy on these was already about 90 per cent. Making it free therefore costs no more than an additional 10 per cent. Look through the cloak and what shows is a roughly 50 per cent reduction in the total amount of grain to be distributed either