Government Plans to Check Inflation may Hinder by Poor Rice Storage and Distribution Systems in Indian States : Government effort to ensure adequate supplies and curb price hikes, may be hinder by the prevailing situation of rice storage and distribution system in the country.
The government is being very kind to increase rice allocations to state governments by around 5 million tons over the requisite rice stocks for the targeted public distribution system (TDPS) for the above poverty line (APL) families.
The Center government distributed the rice above the requirement to the state government but the state government go for hoarding.In FY 2013-14 (April – March), state governments distributed only half of the extra allocated rice stocks. A Food Ministry official noted that some state governments have not distributed the entire amount allocated under TPDS. Sources from the Food Ministry say the FCI allocates rice on time but State governments delay in taking possession of the allocated rice due to the lack of storage and distribution capacity in the respective states. Experts are warning that just allocating extra rice without dealing with a faulty TPDS system would not help in containing inflation.