Centre to decide on universal PDS

NEW DELHI: The Centre will take a call on whether or not to bridge the Above Poverty Line (APL) consumer pie in the world’s largest Public Distribution System (PDS), even while expanding the size of the Below Poverty Line (BPL) consumers at a meeting of state food ministers to be held here on October 28.

While this decision may not save much in terms of food subsidy for the government — as APL consumers are charged for PDS items equal to cost incurred by the FCI — it is expected to target the delivery to the neediest sectors accessing the system.

The conference will also explore ways to enforce the PDS Control Order so that Fair Price Shops (FPS) mandatorily submit records of sales of PDS items to the APL, BPL and Antyodaya Anna Yojana (AAY) categories.

Curiously, although this is the final and clinching proof that the massive multi-crore food subsidy dished out annually by the government is reaching the needy sections among the PDS consumers, state governments have been unable to ensure this years after Targetted Public Distribution System (TPDS) was intiated.

In addition, the conference is also likely to put its seal on other issues including allowing the FPS to expand their menu in order to boost their economic viability and to dish out over Rs 25-30 lakh annually (based on current foodgrain offtake figures) as commission paid to FPS keepers for every kilo of grain sold on the AAY. Thus far, AAY sales did not earn them any commission as did sales to APL and BPL consumers. However, several studies have established that FPS are becoming less and less economically viable over the years and subsisting merely on commission from the latter had become virtually impossible. This in turn is expected to bring down the incidence of diversion of foodgrain,