|
There are reports that this year’s
rains may also be deficient. Since the total rainfall last
year was also below normal, these reports have raised the
spectre of droughts and starvation deaths in some parts
of India. Not surprisingly, a recent panel discussion on
NDTV focused on the issue of how people could be allowed
to die of starvation at a time when government granaries
seem to be too small to hold the stock of available foodgrains
in the country.
The panel included a member of
the planning commission, representing the government’s views.
He had a hard time defending the government’s record in
food distribution. “How can any government which professes
to care for the poor allow starvation deaths when there
are adequate stocks of food available with the government?”
was the constant refrain. As is usual in such discussions,
emotions sometimes got the better of common sense, and some
irrelevant objections to current government policies were
also voiced. For instance, one panelist wanted the government
to ban all exports of foodgrains if the poor could not be
provided with adequate food. This is of course looking at
the problem from the wrong end of the telescope — the domestic
availability of foodgrains is sufficiently large to permit
everyone a square meal even after the export of food grains.
The problem is not one of availability, but of how to ensure
that the stocks reach the really needy.
Why can the poor not get enough
to eat when there is no apparent shortage of food? Amartya
Sen would refer to his theory of entitlements and point
out that the poor have very low entitlements. Put in every
day language, the poor are simply unable to pay for the
food that they so desperately want or need. They are priced
out of the market since they do not have the incomes or
purchasing power with which to back their demand for food.The
only long-term solution is to raise incomes of the poor
so that they do not have to depend on government doles.
Indeed, it is a sad commentary
on the performance of successive governments in the last
five years that we have still not been able to raise minimum
incomes to levels which are at least sufficient to fend
off malnutrition. Although poverty levels have come down
over time, the rate at which minimum incomes have been increasing
is dismally poor. Clearly, the poor have to be fed now,
and this requires well-designed, targeted policies that
deliver food to the poor.
There has been a fair amount of
discussion about ways in which the excess foodstocks can
be delivered to the poor. An obvious distribution channel
is the much-maligned public distribution system. The PDS
has been restructured in recent times. Two levels of prices
have been introduced. Households above the poverty line
are now required to pay substantially higher prices which
essentially cover the economic cost of delivering food grains.
In other words, the subsidy on food supplies to the APL
households has been more or less abolished.
In principle, the PDS has become
friendlier to the poor. Issue prices have been reduced and
quotas increased substantially to those households which
are below the poverty line. Unfortunately, this does not
seem to have had the desired effect because there has not
been any dramatic rise in PDS purchases amongst BPL households.
There are several reasons for this. First, the relatively
poor are not able to take full advantage of the increase
in their rationed quota because they are constrained by
their low levels of income — many of them may simply not
have enough incomes to purchase the additional quantities
of foodgrains even at reduced prices. Second, the coverage
of the PDS leaves much to be desired — there may not be
any PDS outlets particularly in rural areas.
Third, there are allegations that
some states have deliberately not supplied PDS outlets with
sufficient grains. The more charitable version of these
allegations contend that states do not acquire allotted
quotas from the Centre, while the more uncharitable stories
doing the rounds allege that the more villainous states
actually divert grains meant for BPL households to the open
market. Of course, all states should not be tarred with
the same brush — Kerala and Tamil Nadu have managed to ensure
adequate delivery of PDS grain to BPL households.
People who are moved by the acute
social injustice sometimes wonder why the government cannot
arrange for the free distribution of food to the poor. “Is
this not a better solution that letting the rats feast on
the grain in FCI godowns?” they ask. Even if the government
were to release some quantity of foodstocks for this purpose,
it still has to work out a distribution network. Clearly,
the PDS is not a feasible option. Perhaps, a more effective
solution is to supplement the PDS by releasing a fixed quantity
of foodstocks to local bodies such as panchayats.
As in all such schemes, there would be a certain amount
of corruption in the form of leakages. But, the final outcome
would be better than the status quo.
Another possibility is to channel
a much larger volume of foodgrains in rural works programmes.
Such programmes employ workers in the creation of rural
infrastructure, using the excess foodstocks to partly pay
workers in kind. Rural works schemes of this kind have often
been touted as ideal anti-poverty programmes because they
incorporate a degree of targeting. This is because only
the poor and needy will agree to work in such programmes
in view of the inadequate remuneration.
Unfortunately, this solution also
has some fundamental problems. If the main purpose of such
schemes is to provide additional employment or simply to
use up the excess foodstocks, then the projects that can
be carried out must be highly labour-intensive. This places
a constraint on the kind of infrastructure or assets which
can be created. Typically, these cannot be particularly
durable assets — roads which are washed away during the
first monsoon being a good example. This obviously implies
a waste of the non-labour inputs used up in the programmes.
One might as well ask labourers to dig up holes and then
fill them up! On the other hand, if rural works programmes
try to create durable assets, then the projects cannot be
very labour-intensive. Then the overall scarcity of non-food
resources with the government implies that only a small
fraction of foodstocks can be delivered to the poor through
such programmes.
|