Date:05/09/2007 URL: http://www.thehindubusinessline.com/2007/09/05/stories/2007090550040801.htm

Back Fair-price shops

This refers to the article “Do away with fair shops” ( Business Line , September 3). I do not agree that fair-price shops (FPS) should be replaced by marketing outlets with competitive pricing. As 20 per cent of the population are very poor, and about half of them struggle even to pay the FPS prices, they will be hot hard. The author’s suggestion to allow competitive marketing, will no doubt, substantially reduce the cost of food-grains, with improved quality, for the middle and upper-middle-class, for the bottom layer, no competitive pricing strategy can provide foodgrains and other commodities at FPS prices. Hence, the only way to ensure food security for this large segment is to continue with the PDS/FPS scheme with efficient corruption-checking mechanisms for another, say, 5-7 years, till their incomes improve and they can afford to buy at open market prices.

One has only to look at the instance of the recent mobile tariff hike by private companies, even after reducing access deficit charges and when profits are soaring.

Y. N. Murthy Mumbai