The government has been aiming to replace the system of provision of subsidised grain under the public distribution system with a system of cash transfers. This is being done ostensibly to get rid of leakages of grain from the public distribution system.
However, the cash transfer schemes are fraught with many problems, including diversion of money for non-food expenses.
While cash transfer was introduced to prevent leakage of grain, the system had to be adapted to prevent leakage of money. This has led the government to introduce a bizarre system of cash transfer in Nagri Block of Ranchi district.
Madhu Kachhap of the All India Kisan Sabha explains what is going on.