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Revamp of PDS: Govt. to scrap green cards

By S.Rajendran

BANGALORE, DEC. 9. The Government has decided to scrap green cards in the Public Distribution System (PDS) and is planning to issue yellow cards to ensure that only ``genuinely eligible'' among the poor received subsidised foodgrains.

Orders have been issued to all Deputy Commissioners to start a survey of the people living below the poverty line at the village panchayat level. This exercise will be completed in two months and those eligible will be issued yellow cards from February 1. The Centre has cautioned the State Government on several occasions over the bogus green cards.

Mr. D.B.Inamdar, Minister for Food and Civil Supplies, who has been working at streamlining the PDS, told The Hindu here that the yellow cards would eliminate bogus green cards. The green cards forming part of the Targeted Public Distribution System (TPDS) have been in currency for the past 15 years and were meant for the people living below the poverty line. However, a big chunk of the poor people were left out of the PDS, although there has been a steady rise in the number of green cards.

In the view of the Government, it was evident that the green cards had been cornered by influential people. For instance, in Bangalore Rural District, a recent survey indicated that for very 100 families living below the poverty line, there were 146 green cards.

Mr. Inamdar said according to an estimation 20 lakhs out of 60 lakh green cards in circulation were bogus. A survey by the Department of Rural Development and Panchayat Raj conducted in 1997 had indicated that the number of families living below the poverty line in the State was not more than 20 lakhs. In the view of the Government, this survey was improper and it had decided to hold a fresh survey on scientific lines.

The Government has decided to issue coupons to the beneficiaries of the yellow cards which they should give to the vendor while purchasing subsidised foodgrains. The fair price shop owners should submit the coupons to the authorities concerned periodically. This scheme is being introduced to prevent diversion of subsidised foodgrains.

Karnataka has been allotted 1,25,000 tonnes of rice and 25,000 tonnes of wheat per month and of this, the State's offtake was one lakh tonnes of rice and 20,000 tonnes of wheat. While green card holders bought nearly 100 per cent of their quota (obviously because of the price factor), the offtake by the other card holders (above the poverty line) was hardly 50 per cent. With a large chunk of the poor people being denied the green card, the logical conclusion was that the subsidised foodgrains are diverted.

Mr. Inamdar, who took up the matter with the Food Corporation of India (FCI), said under the new system, the Government was thinking of reducing the sale price of the subsidised foodgrains -- particularly rice and wheat. The Union Government had increased the price of rice to Rs. 6.50 a kg. from Rs. 3.50 and that of wheat to Rs. 4.65 a kg. from Rs. 2.75. It had enhanced the quota to 20 kg. per card.

The minister said with a substantial reduction in the number of green cards, the Government was confident of reducing the price of rice and wheat to Rs. 3.50 and Rs. 2.75 respectively. While the Centre spent about Rs. 200 crores a year on subsidised foodgrains made over to the State (for 31 lakhs out of 60 lakh green card holders), the Government spent about Rs. 350 crores to meet the subsidy cost for the remaining of the green card holders. This expenditure could now be diverted to the ``really deserving people living below the poverty line'', Mr. Inamdar said.

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