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INDIA IS considered to be one of the fastest emerging economies in the world with a continuous economic growth around seven to nine per cent in the post-liberalisation period, and ranked within the top five in the world in the economic growth for the year 2010. Yet, in terms of human development, India stands at number 118, according to the UNDP human development index. Results of economic growth are not completely reflected in the life of its citizens; widespread poverty, poor health status, increasing number of people without homes and food show that actual development still needs to be achieved. Government estimates depict the worst scenario in its various reports that percentage of people BPL in India are 27.5 per cent, people with inadequate food are 1.9 per cent, malnutrition under 3 years (underweight children) is 45.9 per cent and homeless people hover around 19.4 per cent.
Under the recently released Global Hunger Index (GHI) 2011 by IFPRI, India is at the alarming stage, ranked at 67. According to index estimates, the proportion of undernourished population is 21 per cent and the prevalence of underweight children less than five years is 43.5 per cent. Indian government has refuted the GHI estimates due to certain limitation of its report methodology. Besides poverty, inflation that seems to hover around 10 per cent in the primary food articles worsen the problem of hunger and malnutrition in India.
Considering all these deficiencies in human development, the National Advisory Council led by Sonia Gandhi, started to work on a Food Security Bill which legally entitles the availability of minimum food to citizens of India. This would hopefully ensure better health and living standard of the beneficiaries. It will be the next flagship programme of upa after the successful experiment of Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), RTE and RTI. The cabinet has approved the National Food Security Bill and it will now be presented in parliament for final consent. According to the Bill, subsidised food grains are to be extended to 75 per cent of the country’s population. The breakup of distribution recommended is 90 per cent for rural areas and 50 per cent for urban areas. The priority households (46 per cent in rural areas and 28 per cent in urban areas) would have a monthly entitlement of 35 kg (equivalent to 7 kg per person) at a subsidised price of Rs 1 per kg for millets, Rs 2 per kg for wheat and Rs 3 per kg for rice. The general households (39 per cent rural and 12 per cent urban in phase-1 and 44 per cent rural and 22 per cent urban in final phase) to have a monthly entitlement of 20 kg (equivalent to 4 kg per person) at a price which would not be exceeding 50 per cent of the current minimum support price for millets, wheat and rice. Targeted public distribution system (TPDS) would also be recommended for reform under National Food Security Bill.
The Indian government already has several schemes for subsidised food for the poor people. One such scheme is TDPS, under which food grains are allocated at subsidised prices to states/union territories for a total number of 6.52 crore BPL families including 2.5 crore Antyodaya Anna Yojana (AAY) families at 35 kg per family per month. Furthermore, allocation of food grains for above poverty line (APL) families are also made at subsidised prices depending upon the availability of stocks. During the last three years, the government has allotted 14,26,54,000 tonne rice and wheat at subsidised prices. Details of distribution under different categories are shown in the table.
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The national Food Security Bill would increase public expenditure burden on subsidy and would widen the demand for food grains. It would augment the government responsibilities for a social cause, but its wherewithal would be put to test during the execution and implementation of the same. It is a well-known fact that the public distribution system is accounted as one of most corrupt public services department in the government. Black-marketeering of food grains, payment of bribe for allotment of fair price shops and issuance of ration cards are the common practices of corruption in the distribution system. This Bill of course could have a great impact and curb starvation and malnutrition through provision of adequate food to the poor and middle class society. But its execution and accountability would be a greater concern so that it is not a repetition of other public distribution schemes. Fears prevail that government may not fulfill the requirement of food grains in such subsidised rates due to a lop-sided supply system. Its financial implication is not truly a measured estimation. Despite the ceding of agricultural land area, productivity of food grains has increased manifold through crop development programmes.
FOOD GRAIN production has increased from 176.39 to 235.9 mt in 1990-91 to 2010-11 charting a 38 per cent growth. The government also has enough stock of food grain to meet the existing scheme requirement. The stock position of food grains in the central pool as on December 1, 2011 was 547.19 lakh tonne comprising of 270.63 lakh tonne of rice and 276.56 lakh tonne of wheat. Overseas export of food grains could also be restricted to meet domestic demands. It is important to curb inflation that has pushed up prices of food articles, which in turn risks the minimisation of the size of targeted beneficiaries of food subsidy. It is also important to understand that people would purchase food grains from the open market if the prices are within his reach. Further, last year due to mismanagement, tonnes of food grains went waste due to poor storage conditions in government warehouses. The government should improve warehouse infrastructure. These statistics show that the Food Bill can be easily implemented with existing resources. The key concern area is how to implement the Bill in a corruption-free environment with better transparency and accountability.
Posted on 22 December 2011 in Tehelka
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