Why cash, why not millets and pulses?

The Congress’ Anna Bhagya guarantee, which promised 10 kg of rice to each individual in a BPL (Below Poverty Line) family, has failed to take off. With the government unable to procure the required quantity of the food grain, it has decided to pay cash to the beneficiaries in lieu of rice.

While the Centre already provides 5 kg of rice, the Congress had promised an additional 5 kg. Accordingly, the new government had approached the Food Corporation of India to purchase rice under the Open Market Supply Scheme. However, the FCI, after first agreeing to sell rice to Karnataka under this scheme, reneged on its word saying that the said scheme had been withdrawn.

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This led to a political slugfest between the state and the Centre, with Chief Minister Siddaramaiah accusing the Modi government of sabotaging the rice guarantee that was meant to feed the poor. States like Punjab and Chhattisgarh did offer rice but the government found that these could not fill the gap fully and reliably. Meanwhile, the Opposition BJP dared the government to transfer cash to the beneficiaries if rice was not available. The government decided to do just that.

Now, eligible beneficiaries will receive money worth 5 kg of rice at the rate of Rs 34 per kg, or Rs 170 a month, as a stopgap arrangement. While the Congress might have thus denied the BJP a chance to gain political mileage,  the question is if this is the right approach. It is well known that cash is liable to be misutilised.

Indeed, even 10 kilos of rice per person was also considered excessive and it was pointed out that it was no secret that many families sell the extra grains in the black, mainly to restaurants. A better option would be to provide millets, pulses or other consumables that the poor could put to better use so that the objective of ‘Hunger Free Karnataka’ is met. Indeed, millets and pulses would also help improve nutrition among the poor.

It should be noted that the grain preference and food habits are different in different parts of Karnataka. Therefore, instead of a rice-fits-all guarantee scheme, the state government should consider a scheme to give jowar, ragi, and other millets to regions that prefer these, thereby overcoming the deficiency of rice that would be needed for a rice-only scheme. The state government should watch how the monsoon turns out and take a decision on whether it should switch to giving millets and pulses or continue with cash, in case of a drought, beyond the three months it has planned for.