Farmers' Collective Calls for Scrapping CBDC-Based Food Subsidy Program in Puducherry
Farmers’ collective urges Puducherry government to scrap CBDC-based food subsidy distribution programme
The Hindu
Image: The Hindu
The Bangaru Vaickal Neeradhara Koottamaippu, a farmers' collective in Puducherry, has urged the local government to abandon a new food subsidy program that utilizes Central Bank Digital Currency (CBDC). They argue it threatens food security and could eliminate ration shops, harming both consumers and farmers.
- 01Farmers' collective opposes CBDC-based food subsidy program in Puducherry.
- 02The program aims to replace direct cash transfers with digital wallets for ration cardholders.
- 03Concerns raised about the elimination of ration shops and food security.
- 04Farmers fear loss of livelihoods due to changes in procurement methods.
- 05Immediate intervention from the Lieutenant Governor is requested to scrap the scheme.
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The Bangaru Vaickal Neeradhara Koottamaippu, a farmers' collective in Puducherry, has formally requested the local government to cancel its Central Bank Digital Currency (CBDC)-based food subsidy distribution program. In a letter to Lieutenant Governor K. Kailashnathan, the collective's president, V. Chandrasekhar, expressed concerns that the program, which aims to replace direct cash transfers with digital wallets for ration cardholders, could undermine the public distribution system. The initiative is intended to support beneficiaries under the Pradhan Mantri Garib Kalyan Anna Yojana by utilizing the Reserve Bank of India's e-rupee for subsidy distribution. However, local farmers and residents have reacted with shock and anxiety to the announcement of special camps for creating digital wallets in Bahour and Ariyankuppam. Chandrasekhar warned that the shift from ration commodities to cash or digital currency could eliminate ration shops, forcing vulnerable populations into private markets with inflated prices. He emphasized that this would disrupt the government's procurement of food grains from farmers, threatening their livelihoods. The collective is calling for immediate action to protect food security in the region.
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The proposed changes could lead to increased food prices for consumers and disrupt the livelihoods of local farmers who rely on government procurement.
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