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The subsidy debate

Prime Minister Manmohan Singh has favoured a re-look at subsidies and hinted at ending those that have failed to bring about equity. A large section of the population is still below poverty line. Subsidies serve as a critical lifeline to sustain the poor and help them to meet their daily needs. Even affluent nations extend millions of dollars as subsidies to their agriculture and dairy sector. The government should not hastily do away with subsidies in critical areas of food, health and nutrition under pressure from lobbies.

H.N. Ramakrishna,

Bangalore

* * *

Capitalist countries have welfare programmes such as food stamps and social security and state-sponsored healthcare that provide enormous benefits to the people without being hijacked by corrupt officials. In India, villagers, on their own and aided by NGOs, complain against corruption in various government schemes but we hardly hear of any action taken.

In other countries, complaints from common citizens are respected and taken seriously, ensuring accountability. It is surprising that rather than ensuring that the benefits reach the people, the Prime Minister has hinted at ending some subsidies. It exposes the fact that he does not recognise that what he labels as subsidies are actually rights of the people.

Ravi Kuchimanchi,

Mumbai

* * *

It would be more appropriate for Dr. Singh and his Cabinet colleagues to analyse the maladies and plug the loopholes, the most important being pilferage of subsidies meant for the poor by unscrupulous elements. Had the subsidies been released to the deserving on time without the interference of middlemen, they would have served their purpose.

Tharcius S. Fernando,

Chennai

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