Right to Food Campaign's opposition to replacement of PDS with cash transfers

[Right To Food Campaign Secretariat]

Dear friends

There is much talk among policymakers of replacing government services such as the public distribution system (PDS) with cash transfers. As government services suffer from leakages and inefficiency, it is believed that replacing them with cash transfers will bring about better delivery, greater efficiency and cost effectiveness. 

However, the Right to Food Campaign strongly feels that dismantling the PDS will severely affect people’s food security and hamper revitalisation of agriculture.  Many of the problems with the PDS, such as mis-targeting and leakages, will remain even with cash transfers. Hence, the Campaign demands universalisation and strengthening of the PDS.

A draft note on replacing PDS with cash transfers is attached with this mail. Please send us any comments you may have on this. Links to articles cautioning against replacing public services with cash transfers are provided below.

Regards

Ankita

Cash delusions (Frontline, Parful Bidwai, Volume 28, Issue 08) http://www.frontlineonnet.com/stories/20110422280809700.htm
 
The flip side of cash subsidies (Himanshu, Mint, 29 March 2011) http://www.livemint.com/2011/03/29210926/The-flip-side-of-cash-subsidie.html
 
A dark lining to the shine (Neelabh Mishra, Outlook, 28 March 2011) http://www.outlookindia.com/article.aspx?270928
 
Govt must fix grain leak, cash won't keep the pots boiling (Biraj Patnaik, Times of India, 25 March 2011) http://articles.timesofindia.indiatimes.com/2011-03-25/developmental-issues/29187770_1_transfers-food-security-rights-violation

A complement, not a substitute (Jean Drèze, Down to Earth, 15 March 2011) http://www.downtoearth.org.in/content/complement-not-substitute
 
Putting cash transfer in its place (Himanshu, Mint, March 15, 2011) http://www.livemint.com/2011/03/15210253/Putting-cash-transfer-in-its-p.html
 
The siren song of cash transfers (Jayati Ghosh, The Hindu, 2 March 2011) http://www.thehindu.com/opinion/lead/article1504114.ece
 
Food or cash: The subsidy conundrum (Himanshu, Mint, 1 March 2011) http://www.livemint.com/2011/03/01211232/Food-or-cash-the-subsidy-conu.html

Kind to Cash (Richard Mahapatra, Down to Earth, 15 February 2011) http://www.downtoearth.org.in/node/32976

Devil's in the delivery: Why cash, stamps for food will never work (Biraj Patnaik, The Times of India, 26 November, 2010) http://articles.timesofindia.indiatimes.com/2010-11-26/developmental-issues/28237275_1_food-stamps-pds-kaushik-basu#ixzz16SWgMwX5


Secretariat - Right to Food Campaign
C/o PHRN, 5 A, Jungi House, Shahpur Jat, New Delhi 110049. India
Email: right...@gmail.com | Phone - 91 -11 -2649 9563
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