Rice-for-poor scheme runs into scams…….T E Narasimhan & R Krishna Das
Distributing rice at Rs 1-2 a kg is becoming a daunting task for state governments
Distributing rice at Rs 1-2 a kg is becoming a daunting task for state governments
Tamil Nadu pioneered it, and the rest of the country quickly implemented it for its popularity ratings. But the distribution of rice at Rs1-2 a kilogram (kg) is increasingly becoming a daunting task for the state governments.
In Tamil Nadu, the Dravida Munnetra Kazhagam (DMK) government started distributing rice at Rs1 a kg over four years ago. Today, it is waging a war against diversion of that rice not only to other states, but also abroad.
The Puducherry revenue and police officials last month seized a truck with 100 bags of public distribution system (PDS), rice suspected to be smuggled into Puducherry from Tamil Nadu. Food cell officials of the Tamil Nadu Civil Supplies Corporation said they recently arrested three people and seized 500 kg of PDS rice being smuggled into Andhra Pradesh. Cases were registered under Section 614 of TNSC Essential Commodities Act and they were remanded in judicial custody. This month, the state police arrested two persons for smuggling 500 kg of PDS rice into Kerala. They were arrested at the Marthandam junction, bordering the southern state.
Sources say the smuggled rice is sold at anything between Rs18 and Rs28 a kg in Andhra Pradesh, Kerala and Karnataka. Abroad, it is sold at Rs120-150 a kg.
Recently, about 2,212 tonnes of PDS rice, valued at Rs3.89 crore, were seized by Customs officials at Tuticorin port. The consignment was about to be exported to the Maldives. Customs officials suspected it to be PDS rice.
To check this leakage, the Tamil Nadu government recently set up a special police wing comprising Civil Supplies CID, headed by an additional director general of police, assisted by a senior police officer of the rank of inspector general of police. This wing has a strength of 236 police personnel located in 16 units spread across the state. Periodic inspections and raids are being carried out and action is being taken under the Prevention of Black Marketing and Maintenance of Essential Commodities Act, Goondas Act and Essential Commodities Act.
It was estimated initially that the scheme would cost the exchequer Rs400 crore more. The subsidy bill shot up to Rs1,559.64 crore in 2005-06 from Rs1,017 in 2004-05. It rose to Rs4,000 crore this year after the government added sugar and pulses, and additional rice it buys from the open market, into the scheme.
There are also reports that many families buy rice from cardholders at Rs5 a kg and sell it to the smugglers or across the border at Rs15 a kg.
The scheme is not universal and beneficiaries get up to 35 kg of rice every month based on a cardholders earnings. Around 18.6 million cardholders benefit out of it.
Chhattisgarh is faced with a different challenge over this food security scheme. It is proving to be a threat to food production in the state, where people below poverty line get rice at Rs2 a kg.
Cultivators are finding it difficult to get farming hands and the crops that are most likely to bear the brunt are pulses, oilseeds and vegetables, which need manual labour.
Bodhram, a resident of Hasda village in Durg district, worked in the field of Rajesh Parghania a couple of years ago for Rs100 a day. He is one of the beneficiaries of the Rs2-a-kg-rice scheme, which has meant that his food concerns are at the minimum. This year, he has entered into an unusual pact with his master to share 50 per cent of the yield from the field.
Parghania, who owns about eight acres in the village, said he was unable to find workers and could do nothing but to accept the deal.
About 3.7 million BPL people in the state are being provided rice at Rs2 a kg.
Since the basic need of the labourers to arrange a day meal is being fulfilled by the scheme, focus is now on making money, said Durga Shankar, another medium-scale farmer.
Farm labourers are increasingly taking land on lease with an agreement to share 50 per cent of the yield to earn more.
Parghania has almost left farming and has given half his land on lease. Bodhram, who once worked for a daily wage of Rs100 with him, will be his partner.
The poor are becoming wealthy, while the medium farmers are becoming poor because of the (rice) scheme, said Parghania.
However, there is optimism. Paddy production will not be affected by this development. Large farmers use machines and their dependence on workers is low, said a farm owner.
The situation will not be the same with vegetables, oilseeds and pulses, said Sanket Thakur, director of Agricon. He added that machines could not be used for transplanting or harvesting vegetables and other crops. He said in future the labour crises arising out of the rice scheme could have a big impact on agricultural production.
The state government differs. Chhattisgarh Food Minister Punnulal Mohile said the subsidised rice scheme was their ambitious project to ensure not a single person in the state slept empty-stomach.
| FOOD FOR THOUGHT | |
| Chhattisgarh | |
| Population: | 20.8 million |
| BPL population: | 3.47 million |
| PDS beneficiaries: | 5.4 million (including nearly 2 million APL card holders) |
| Tamil Nadu | |
| Population: | 62.4 million |
| BPL population: | 524,000 |
| PDS beneficiaries: | 19.7 million cardholders |