1.7. Alternatives to PDS

1. The high level committee chaired by Shanta Kumar in 2015 had recommended gradual introduction of cash transfers in PDS, starting with large cities with more than 1 million population; extending it to grain surplus states, and then giving option to deficit states to opt for cash or physical grain distribution. DBT in the name of lady of the house, and routed it through PM Jan Dhan Yojana, and dovetailing it with the UIDAI has also been suggested. This will help in better targeting, and plugging leakages.

2. Food coupons can be provided to the beneficiaries through which they can buy food grains from store, and the dealer could be reimbursed on production of these coupons at the Government treasury. This will remove the problems of procurements, diversion and black marketing of food grains.

3. A Universal Basic Income to all.

4. Entitlement of a fixed basket of food or its monetary equivalent can be provided to all, but the richest individuals. This will remove exclusion error, as it is easier to identify rich, than to identify a poor person.