Sunday, April 01, 2007

Why the government keeps Indians poor

To understand the enormity of the falsehood, let me put things in perspective. The net per capita food availability in India in 1971 was 394 gm per day. This was just after the onset of Green Revolution in India. Exactly 30 years later, in 2001, the net per capita of foodgrain availability was 396 gm per day: a princely rise of 2 gm! In effect, for over 30 years our farm growth has barely kept pace with our population growth.
A comparison with other countries is central to understanding the extent of food shortage prevailing in India. Advanced countries, on a per capita basis, consume anywhere between 500 gm to 600 gm per day. Such healthy consumption in these countries is supplementary to the substantial quantity of meat, fruits, vegetables and milk.
The government spends about Rs 26,000 crore (Rs 260 billion) every year on food subsidy, through the public distribution system (PDS), for those living below the poverty line. It is estimated that for every Re 1 of subsidy to reach the ultimate beneficiary, the government has to spend approximately Rs 7 on the administrative mechanism. In fact, of the 300 million poor estimated to be below the poverty line in the country, only 25 per cent are estimated to have access to PDS.

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