The Food Security Bill aims to provide subsidized food grains to 75% of India's population. It legally entitles priority households to 35kg of grains per month and general households to 5kg per person per month. It also includes provisions for maternal and child nutrition programs. However, there are concerns about the large cost of implementation and risk of leakage given the scale of public distribution needed. Proper identification of beneficiaries and enforcement of transparency measures will be critical to the success of the bill.
2. INTRODUCTION
The Indian National Food Security Act,
2013 (also Right to Food Act),
retroactive to July 5, 2013.
passed in the Lok Sabha on 26 August 2013
was signed into law September 12, 2013,
3. 22% of Indian population is still undernourished
40.4% children under the age of 3 years are underweight;
78.9% children in the
age group of 6 months to 35 months are anemic
33% women in the age group of 15-49 have BMI
less than normal limit.
FACTS
4. Features of National food security bill
Subsidized food grains, legally entitled to be
distributed among country’s population will be
increased up to 75%
Priority households will be entitled to get 35 KG
grains every month
General households are entitled to 25 KG (5 KG per person basis)
grains per month
5. Features of National food security bill
The minimum price, entitlement and coverage should remain unchanged
until the end of five year program.
The categorization of general and priority household are to be decided
by the government of India.
Reformation of Public Distribution System.
Legal food entitlements for maternal nutrition, child nutrition, destitute a
nd other groups vulnerable to poverty and malnourishment.
6. Beneficiaries are to be able to purchase 5 kilograms per
eligible person per month of cereals at
the following prices:
•3 (4.8¢ US) per kgRICE
•2 (3.2¢ US) per kgWHEAT
•1 (1.6¢ US) per kg.
COARSE GRAINS (MILL
ET)
7. DETAILS
1. Preliminaries – 5th july 2013
1. Entitlements ( Via Public distribution system : PDS )
priority house holds – 5KGS
antyodaya house holds -35 KGS
8. Below six years exclusive breast feeding shall be promoted
6mths – 6yrs yrs mid day meal every day
6-14 yrs one free mid day meal every day
Children suffering from malnutrition – free meal by local
anganwadi
i. Children’s Entitlements -
9. ii. Entitlements of Pregnant and Lactating Women
3. Identification of Eligible Households
State wise
coverage of
the PDS
No.of
eligible
persons
No.of
eligible
households ;
state govt
Identification
in 365 days
List of eligible
households to
be placed in
public domain
10. 4. Food Commissions
-Implementation of act
-Violation of entitlements
-Prepare annual reports
5.Transparency and Grievance Redressal
-Two tier involving DGRO
- Placing PDS
- Periodic audit
- Transparent recording of transactions & vigilance committee
11. 6. Other Provisions
-Various PDS reforms
-7. Schedules
I- issue prices
II – nutritional standards
III – advancing food security
IV – minimum food grain allocation for each state
PDS
reforms
Managem
ent of fair
price
shops
Door step
delivery
End to end
computeris
ation
Leveragin
g UID
Transparen
cy of
records
12. Implementation of food bill
Distribution of grains through Public Distribution System (PDS).
Identification of beneficiaries.
Suggested way out is use of Aadhaar network.
13. HURDLES
Grain disbursement is currently facing leakage and theft issues.
Bill does not specify a clear implementation framework.
Overlooks the nutritional aspect.
Grain consumption choices vary across the country.
14. Impacts : Pros
Provide food grains to 67% of the population (approx. 800 million) at highly subsidized rates.
Grains amount to 5 Kg / per person / per month has to be allotted.
Women will be made head of the family according to this scheme. This is very positive step.
Special maternity benefits : Free Meal for every pregnant and lactating mothers (during pregnancy
and 6 months after child birth).Also, allowance of Rs.6000 will be given in instalments as
maternity benefits.
Special privileges for children under different age groups like free meals etc.
Will be useful for people Below poverty line & avoid Malnutrition.
15. Impacts : Cons
There will be fixed quota per state of grains allotted. Onus is on the respective states to
decide the beneficiaries . This can lead to wide regional disparities as a person not eligible
for such great benefits in one state may be eligible in other state.
Cost of this bill as projected by Govt (UPA) : 1.25 lakh crores which will greatly impact
current fiscal deficit.
This system is prone to much corruption as number of beneficiaries is to be decided at state
level. Corrupt ministers can illegally hoard the grains and make shortage of grains as an
excuse.
With such high procurement of grains by Govt , little will be left in open market which will
lead to demand-supply imbalance and can lead to rise in prices and hence inflation.
16. Impacts : Cons
As our major exports are of grains, FSB will hamper our exports, leading to more Current
account deficit. More CAD means more rupee fall, means more expensive imports (oil
used in transportation) , means more inflation.
Government will need to borrow high amounts from Banks to finance such huge
project. So, banks will be lending more to government, leaving less for general public
which will hamper private sector growth.
Less growth means loss of jobs, less production and that implies more to be imported
from outside India which puts pressure on our foreign exchange.
17. Hidden Facts
Strangely, number of beneficiaries has been fixed in the ordinance without specifying eligibility criteria and
fix individual entitlements. Between different States, there could be wide regional disparities.
Ordinance proposes to reduce the entitlement of BPL families from 35 kg per family to only 25 kg per
average family of 5 persons , the BPL family will now have to incur Rs. 85 more per month to avail 35 Kg food
grain.
The proposed entitlement of 5 kg per month per person implies the supply of only 165 gm per person per
day. Persons involved in labour intensive activities require about 2,500 calories per day. As 100 gm of food
grain gives about 350 calorie, 165 gm would provide only 500 calories per day which is hardly 20% of one’s
daily calorie requirements.
Even in the Mid-day Meal scheme, school going children are entitled to about 150 gm of food grain, and 30
gm of dal for one meal i.e. about 180 gm of grain. As against this, an ‘adult food insecure person’ is proposed
to be given only 165 gm for 2 meals per day.
18. Conclusion : Better way to handle this
Government should have let the economy stabilize first. It could have been
after elections.
Could have been more specific about the beneficiaries at central level.
More stringent laws and proper implementation to check corruption
specially when poor is involved.
Helping poor to earn money rather than directly feeding him by removing
stupid labour laws that hinder our manufacturing.
Enforcing the GST (Goods and Services Tax.)