Prominent economists Amartya Sen, Raghuram Rajan and Abhijit Banerjee have voiced their concerns regarding the economic hardships brought about by the Covid-19 lockdown. They’ve also recommended steps to alleviate these issues.
The Potential Threat of Lockdown Disobedience
In the event of a prolonged lockdown, a large number of people might be driven into acute poverty or starvation due to the loss of their income and disruptions in conventional delivery systems. This situation poses a risk for the mass defiance of lockdown orders.
The Necessity for Government Reassurance
The government should reassure people that it does indeed care for their minimum well-being and has the resources to ensure this. In March 2020, the Food Corporation of India’s food stocks stood at 77 million tons, far exceeding the “buffer stock norms”. This quantity is expected to increase over the next few weeks with the arrival of the Rabi crop.
The Need to Extend Public Distribution System (PDS)
While the government has supplemented the PDS with provisions of 5 kg/person/month for the upcoming three months, there are concerns that this timeframe will not suffice. Even after the lockdown ends, the economic rejuvenation process would take some time.
Multifaceted Challenges
Starvation isn’t the only worry. The abrupt loss of income and savings could have significant consequences. Farmers need money to purchase seeds and fertilizers for the coming planting season, shopkeepers need to restock their inventories, and many individuals need to repay loans that are already due.
Areas of Improvement
The government has partially acknowledged this through cash transfers promised under the Pradhan Mantri Garib Kalyan Package to select groups. However, the monetary amounts are both small and specifically targeted.
About Food Corporation of India (FCI) and Public Distribution System (PDS)
Established as a statutory body in 1965, FCI aims to mitigate grain shortages. It operates under the Ministry of Consumer Affairs, Food and Public Distribution. PDS, an Indian food security system also operated under the same ministry, manages scarcity through affordable distribution of food grains.
Issues with the Public Distribution System
The PDS excludes a significant portion of the poor population for various reasons, such as hurdles in obtaining a ration card. The supplementary provision only benefits those already enrolled in the system. This exclusion stems from outdated census data, pending applications, and State government’s hesitancy to issue new ration cards beyond the Central quota limits.
Way Forward
To deal with this crisis tactfully, the government should consider using its resources efficiently. Actions could include expanding PDS, setting up public canteens for migrants, delivering equivalent school meals to homes with children, collaborating with local NGOs, transferring funds to Jan Dhan accounts of identified poor households, and issuing temporary ration cards with minimal checks to those in need.
