It’s a double whammy for the rural poor

Demonetisation leaves them cashless, and there is no rice at PDS outlets

November 18, 2016 12:00 am | Updated December 02, 2016 04:11 pm IST - KOZHIKODE:

The demonetisation of high-value currency notes has added to the woes of the poor, particularly in rural areas, who have already been hit by the crisis in the public distribution system.

Ration card-holders have not so far been supplied the subsidised rice quota for November.

New scheme

The confusion and uncertainty over the implementation of the new ration scheme, scheduled to have been rolled out on November 1, coupled with ration retailers’ agitation over remunerations, caused the deadlock.

“The government had promised to get the November quota soon,” Kadmpuzha Moosa, chairman of the ration retailers’ associations, told The Hindu .

“But, this has not happened yet.” He said the Food Corporation of India was refusing to deliver the November quota to the wholesale dealers. “The FCI insists that there is no provision in the Food Security Act-driven new ration scheme for middlemen; the stocks should be door-delivered to the retailers.” Earlier, the FCI supplied the foodgrains to 330 wholesale dealers and 11 Civil Supplies depots who passed on the stocks to the retailers.

Hasty announcement

The government had hastily announced the roll-out, without necessary preparations to handle such a huge restructuring in ration supply while implementing the Food Security Act. The card-holders were divided into priority and non-priority. Only 1.53 crore people got included in the priority group, triggering people’s protests as well as huge rush at government offices to get the extensive errors on the list rectified.

Adding to the government’s trouble, the retailers launched a non-cooperation drive, demanding a revised remuneration package and insisting that the government door-deliver the stocks to them.

Postponed

The government has now postponed the roll-out of the new ration scheme to April 1. It has also set up a committee consisting of retailers’ leaders and government officials, to find a method to compensate the retailers. T. Mohammedali, convener of the coordination committee, said the committee would devise a formula to pay the retailers for five months—from November 14 to April 1, when the new scheme would be launched.

No rice in outlets

However, while the retailers’ concerns have been addressed and they are now cooperating with the government, the card-holders are deeply concerned that there is no rice available in the ration shops. The demonetisation came as bolt from the blue for the below poverty line people as they are unable to purchase rice from open market because of cash shortage.

For workers, on the one hand there is no work and income because of the demonetisation; and on the other, no rations.

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