Food items will be the last to be brought under the Direct Cash Transfer scheme, said K.V. Thomas, Union Minister for State for Consumer Affairs, Food and Public Distribution.

For now, only various pension and scholarship schemes are under the cash transfer scheme implemented in a pilot project in select villages. Later, the proposal is to include LPG and kerosene.

Addressing a group of journalists of The Hindu and Business Line today, he said there are a lot of issues to be ironed out before food items are brought into the cash transfer system. The entire system, he said, needs to be cleaned up as there are a lot of lacunae.

Dealers in the system are not getting adequate commission and leakage needs to be plugged.

“We are writing to State Governments to give a better commission to dealers, and convince the cooperative movement, local bodies or women self help groups as much as possible to actively participate in the system,” he said.

Modernising distribution

There is also a crying need to modernise the distribution system, sort out issues such as storage and transportation of food, weed out bogus cards, make the system reasonably foolproof, and bring at least 90 per cent of the population under financial inclusion. Only then will it be possible to effect direct benefit transfer for food, said the Minister. “This will take a while,” he added.

To dispel any apprehension that once the cash transfer system is introduced the Government may not procure from farmers, he said the Government will continue to do so. Farmers will get a minimum support price and the food will be distributed through the PDS, he asserted.

Talking about the Food Security Bill, Thomas said he was confident that the amended Bill will be passed during the current session of Parliament. On the practicality of food security, he said, “Though a big challenge, we can do it.”

According to him, the Government’s subsidy commitment for the present targeted public distribution system is Rs 1 lakh crore. However, going by the revised estimates (according to the 2010 Census), it will come to around Rs 1.35 lakh crore – including midday meals and other such schemes.

The Government will have to procure 62-63 million tonnes of foodgrains. This will make at least 67 per cent of the population (80-82 crore people) legally entitled for food.

“This won’t be a difficult task, as there will not be any major financial problem,” he said.

According to the projection given by the Ministry of Agriculture, the Government has to procure 82 million tonnes of foodgrains every year till 2040.

“Our production is to the tune of 223 million tonnes. We are already exporting some. If we have surplus to export, why not give it to our people,” he said.

To a question on Justice Srikrishna’s recommendation for a unified regulator by including the functions of the Forward Markets Commission, he said that his Ministry was studying the issue.

ravikumar.r@thehindu.co.in

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