HYDERABAD: The state government is likely to roll out cash transfers for food under the public distribution system. With growing instances of irregularities by fair price shop dealers, chief minister K Chandrasekhar Rao, at a review on civil supplies department here on Saturday enquired about implementing the direct benefit transfer scheme (DBT) in the public distribution system.
The state government is spending `6,500 crore for distribution of subsidised rice and other essential items to the poor through PDS. There have been complaints of diversion of PDS rice and hoarding of the rice illegally. The fair price shop dealers too are frequently threatening to go on strike. To put an end to these problems, the state government is examining implementing the DBT system instead of providing rice through fair price shops.
The officials informed Rao that DBT is being implemented in various Union Territories like Chandigarh, Puducherry, Dadra Haveli where the authorities are depositing money directly into the accounts of beneficaries instead of supplying the essential commodities. In 2013, the then UPA government had brought in Food Security Act 20/2013 which also suggested the money transfer as subsidy to the beneficiaries. It also explained how it would be beneficial to transfer the money instead of distributing the essential commodities.
The officials said at present rice was being supplied at a fixed time. Instead, if the money is transferred to the beneficiaries, they can buy whatever commodity they need at their convenience. Responding to this, the chief minister asked the officials to study the feasibility of the DBT scheme. Meanwhile, officials said they were making alternative arrangements against the strike notice given by the dealers.