In the light of rising foodgrain prices, a Lok Sabha Public Accounts Committee report has found significant deficiencies and lapses in the implementation of the Government’s food management policy. It warns that with the difference between the market price and the Public Distribution System (PDS) price growing, chances of pilferage are going to increase.

Diversion of foodgrains continues to be the biggest scourge and despite several reports in the past that have revealed this, very little has changed in the Government’s food management policy. In 2003-04, out of 14.07 million tonnes of foodgrains issued to 16 states at BPL issue prices from the central pool, only 5.93 million tonnes were delivered to poor families. Out of the remaining 8.14 million tonnes, 5.12 million tonnes leaked out. In Bihar and Punjab, 75 per cent leakage was observed.

While all India figures showed an overall diversion of 39 per cent for rice and 53 per cent for wheat, the report finds “the vigilance system is non-functional”.

The PDS was originally conceived as an instrument for protecting consumers from food shortages and producers from price fluctuation, especially the vulnerable, and was built around a network of 4.92 lakh fair price shops. “Chronic mismanagement, cost inefficiencies, poor quality of foodgrain supplied and large inaccuracies in the enumeration of beneficiaries resulted in exclusion of a substantial number of poor from the system entirely. To make matters worse, the illegal diversion of PDS commodities to the open market through a highly institutionalised network of agents, middlemen severely undermines the capacity of the system to service the needs of the poor,” states the report. The report finds rampant irregularities in identification of BPL families. There is “incoherence” in the methodology of identifying BPL.

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