Food Stamps

Food stamps are a good idea for social food schemes:

  1. Offer food stamps to the BPL families as benefits by employers or from govt.
  2. Food stamps give you ability to buy a certain amount of food grains/vegetables.
    1. You could technically offer several food 'plans' that you can choose from to fit to your taste.
    2. South Indians could opt for more rice and lesser wheat
    3. North Indians could opt for more wheat and lesser rice
    4. The proportions can be decided based on the cost to the govt. to provide for such food.
  3. Food stamps are offered as quantity of food rather than rupee value
  4. Not exchangeable for any other good. It will be an offense to avail it for anything else.
  5. Any trader can sign up for this distribution system. They can be paid a small incentive for selling more food under food stamp scheme. Incentives on consistency of sales as well to ensure no hoarding of food for when rates are better.
  6. Trader has to buy food stocks from the open market.
  7. Reimbursement is given by govt. at fixed national rates.

Advantages:
  1. Prevents diversion of money for food to poor to alcohol, other non-essential purchasing.
  2. Will strengthen trader distribution system since they have incentive to setup empanelled shops.
  3. Multiple Traders will try to purchase at lower price than govt. fixed rate and cause better competition.
  4. Govt. does not have to worry of setting up ration shops everywhere.
  5. Govt. PDS system's leakage issues are no longer a worry.