In recent days a lot of noise has been made about minimum 32Rs. spending capacity as definition of poverty in India. Although what i have understood this exactly is not a definition for poverty(correct me if I am wrong) but minimum amount required to scrape through. There seems to be two diametrically opposite viewpoints on this. One is of dyed in wool hardcore economists who are opposed to universal PDS on grounds that it will increase subsidy bill of India whereas on the other end of spectrum are the activists who says that with inflation increasing at such a break neck speed it is becoming hard for poor to even have a two square meal. Huge cost of providing universal PDS is cited as one reason. What i have made out of methodology of Universal PDS going through various articles on net is that first of all universal does not include everyone. This means 80% poorest people of India (top 20% will exclude through self selection) which comes out to be roughly 96 crores. Family size as per various studies is approximately 5 which makes 19.2 crore families. As per model followed in most of states a total of 35 Kg. of food grains are made available(It could be different in different states e.g. in my home State Himachal in addition to grains pulses, sugar and mustard are provided through PDS). This 35kg include wheat and rice in 2:1. In addition to current subsidy approximately a total of about 45000 crores more will be needed to ensure universal PDS distribution(again a figure taken from internet this link may help further http://www.smart-foundation.com/sm1.pdf ) which is about 1% of GDP, a small price to pay for eradicating hunger from country. As far as subsidy bill is concerned prices could be increase slightly but not much to take PDS completely out of reach of poorest of poor defeating whole purpose. Finally What i make out is that benefits far outnumber any perceived harms. For starters Universal PDS could be started on a pilot basis at say about 100 poorest districts across India and gradually it can be increased to cover whole country. This will go a long way in ensuring that stigma of hunger is eradicated from India for once and all.
