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U.P. has a new plan for food distribution

LUCKNOW: In an effort to arrest rampant corruption in distribution of food grains to poor and needy persons, the Uttar Pradesh Government has readied a proposal on “cash food subsidy” from the Centre.

Government sources said here on Monday that the proposal would be sent to the Centre in a couple of days. Aimed at changing the system of distribution of food grains under the Public Distribution System (PDS), the proposal would be taken up as a pilot project in Lakhimpur-Kheri and Hardoi districts of Uttar Pradesh. To implement the pilot project in the two districts, the Bahujan Samaj Party government has demanded Rs.206 crore as cash food subsidy from the Centre. Sources said the novel proposal could be implemented only with Union Government approval.

Below Poverty Line and Antyodaya ration cards holders stand to benefit from the cash food subsidy. Elaborating on the proposal, official sources said the difference between the subsidised price of the food grains available at the PDS shops and the market price should be paid in cash to the ration card holders.

“The cash component can be an effective check on the corruption in the PDS system and act as a deterrent on hoarding and diversion of food grains. Besides, it would enable the ration card holders to purchase the commodity at market price,” said a Government official.

The cash component would be transferred directly to the bank accounts of the beneficiaries.

Sources admitted that the proposal aimed at bypassing the PDS system as experience had shown the government machinery to be engrossed in procedural matters like checking the diversion of grains and exposing the multi-crore food scandal which rocked UP in 2004 and 2005. The food scam is being investigated by the Special Investigation Team.

“The last man standing on the social ladder has been ignored,” the official said.

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