2. Introduction
• India food security system
• Public distribution of essential commodities has been in
existence in India since inter-war period
• Extended to tribal blocks and areas of high incidence of
poverty in 1970s and 80s
• General entitlement scheme for all consumers without any
specific target till 1990s
• Revamped Public Distribution System (RPDS) was launched
in June 1992
• The Targeted Public Distribution System (TPDS) was
introduced with effect from June, 1997
• Operated under the joint responsibility of the Central and
the State Governments
3. evamped Public Distribution Syste
• Launched in June, 1992
• Cover 1,775 blocks wherein specific area specific programmes
such as the Drought Prone Area Programme (DPAP), Integrated
Tribal Development Projects (ITDP), Desert Development
Programme (DDP) were implemented
• Designated Hill Areas (DHA) identified in consultation with
State Governments for special focus, with respect to improvement
of the PDS infrastructure
• Distribution in RPDS areas were issued to the States at 50 paise
below the Central Issue Price
4. arget Public Distribution System
• Launched in June, 1997
• Introduced, with the intention to benefit about 6 crore poor families, for whom a
quantity of about 72 lakh tonnes of food grains was earmarked annually
• Government of India increased the allocation to BPL families from 10 kg. to 20 kg of
foodgrains per family per month at 50% of the economic cost and allocation to APL
families at economic cost w.e.f. 1.4.2000
• End retail price fixed by the States/UTs after taking into account margins for
wholesalers/retailers, transportations charges, levies, local taxes etc.
• States were requested to issue foodgrains at a difference of not more than 50 paise per
kg over and above the Central Issue Price for BPL families
• Flexibility to States/UTs given in the matter of fixing the retail issue prices under TPDS
except with respect to Antyodaya Anna Yojana where the end retail price is to be
retained at Rs.2/ a kg. for wheat and Rs.3/ a kg. for rice.
6. lights of the National Food Security Act, 2
This Act of Parliament received the assent of the President on
10th September, 2013.
Priority households are entitled to 5 kgs of foodgrains per
person per month, and Antyodaya households to 35 kgs per
household per month.
The combined coverage of Priority and Antyodaya households
(called “eligible households”) shall extend “up to 75% of the rural
population and up to 50% of the urban population”.
The PDS issue prices are given in Schedule I: Rs 3/2/1 per kg for
rice/wheat/millets. These may be revised after three years.
7. Provisions for nutritional security
and entitlements to special groups
Target Group Entitlement
Pregnant woman/ Lactating Mother Meal, free of charge, during pregnancy
and six months after child birth
Maternity benefit of Rs 1000 per month
for a period of six months
Children (6 months-6 yrs) Age appropriate meal, free of charge,
through the local anganwadi
Children (6 years-14 yrs) One mid-day meal, free of charge,
everyday, except on school holidays, in all
schools run by local bodies, Government
and Government aided schools, up to
class VIII, so as to meet the nutritional
standards
8. • Revitalisation of Agriculture: increase in investments in
agriculture, including in research & development, ensuring
remunerative prices, credit to farmers, crop insurance, etc;
• Procurement, storage and movement related interventions:
incentivizing decentralized procurement including procurement
of coarse grains, augmentation of adequate decentralized modern
and scientific storage etc;
• Reforms in TPDS: application of information and
communication technology tools to improve PDS system,
leveraging „Aadhaar‟ for unique identification of beneficiaries for
proper targeting of benefits under this Act etc, ensure
transparency12;
The Act also proposes the following steps:
9. Modus Operandi under
NFS Act
Central Pool maintained by
Central Government
Transported to designated
depots in Each State as per
allocations
Intra-State allocation and
delivery to FPS by State
Government
Local authorities responsible
for implementation and
monitoring
16. Distribution : TPDS
Estimates of leakages from TPDS
Unit 2004 - 05 2009 - 10
Offtake under TPDS (Rice + Wheat) Mn
Tonnes
29.4 42.4
PDS Food consumed by the
population, NSSO
Mn
Tonnes
13.2 25.3
% Leakage of Food 54.1% 40.4%
Source: NSSO Survey (66th Round), Department of Food & Public Distribution
18. Financial obligations under NFS Act -
Food Subsidy
Food Subsidy : Total and as % of GDP – agri (current prices)
Source: Expenditure Budget, Various years & CSO
19. Difference between Economic cost and Issue Price
Source: FCI, Ministry of Consumer Affairs, Food & Public Distribution
20. Other expenditures to fulfill the obligations
under NFS Act:
• Investments required for enhancement of agricultural
activity
• Increased requirement of marketing and processing
infrastructure
• Increased requirement of storage/ warehouse capacity
22. Forcible low-level equilibrium trap for
Indian agriculture
Restricted Private initiative in Agriculture
Increase in subsidies Vs Investments
Inflationary pressures on food prices
23. CCTs as an
alternative model• Motivate and enable parents to invest in their
children‟s education and health
• To the extent that there are positive
externalities from household-level investments
in human capital, these positive externalities will
accrue to society as a whole
• Successful examples of Brazil and Philippines
24. Conclusi
on
• diversified demand patterns need to be
appreciated
• food security not limited to availability of
foodgrains
• malnutrition is a multi-dimensional problem
• nutrition to be linked with health, education
and agriculture interventions
