15% households cling to ration cards for needs other than PDS

No ‘official orders’ delinking them from welfare schemes

A significant number of households across Telangana are holding on to food security cards or ration cards as the State Government has not issued “official orders” de-linking them from welfare schemes such as Aarogya Sri, fee reimbursement and several others, although some statements were made by the Minister concerned and others.

It is understood that as many as 15% of over 85.36 lakh households having ration cards are not drawing commodities supplied through the Public Distribution System, particularly the subsidised rice, regularly. However, introduction of the e-PoS (electronic-point of sale) system has helped the government save ₹490 crore so far out of ₹828 crore expected to be saved in the entire year (2017-18) since it prevents diversion of the quantity meant for these beneficiaries.

An observation (sample study) made by the Civil Supplies Department has indicated that about 50% to 55% of the beneficiaries have been drawing rice and consuming it and 30% to 35% of them have been drawing the subsidised commodity but not consuming it. “In other words, it is being sold by them to small traders in villages at about 10 to 12 times higher than the drawl price of Re.1 per kg and, ultimately, ending up in recycling”, sources in the department admitted.

It is stated that Minister for Civil Supplies E. Rajender had announced that ration cards were delinked from any other welfare scheme or requirement as address proof quite a few times but it was yet to come up in black and white. “The State Government has not issued any order so far delinking ration cards for other needs and as a result it is still being asked for at various levels for availing schemes”, the sources explained.

Reduced allocation

Delinking of ration cards from other schemes “officially” is expected to bring down the budget allocation to Civil Supplies straight away. The department is being allocated about ₹2,700 crore a year but with de-linking of ration cards from other needs would surely reduce it by about ₹400 crore to ₹500 crore since 15% of the beneficiaries have been holding on to them for other needs and have not been drawing rice and other commodities.

It is understood that a loud thinking is also on in the government about supply of super fine quality rice as part of the PDS since a sizeable number of the beneficiaries are found to be not consuming the rice being supplied now.