Food Security Bill

------------------------------------------------------------------------------------------------------------------------How it Started?
Once upon a time in October 2010, Sonia Gandhi wrote to Manmohan Singh (Yes, it indeed happened
J), forwarding the basic framework for National Food Security Bill.
Is there a need for Food Security Bill??
1. In economic sense, India has a huge asset in form of human resources. When people are well fed
and educated, growth in long term is bound to happen.
2. In social sense, malnutrition in children is 42% and 56% of pregnant women are anaemic (the
Hunger and Malnutrition (HUNGaMA) report by the Naandi Foundation )
Earlier though there was delivery of grains, it could not be enforced as a right. Now, it can be. So it is
essential that RIGHTs BASED approach to food is pertinent to tackle this looming crisis of malnutrition
and hunger.
What does food security bill guarantee?
1. Food entitlements to 67% of the population (75% in rural & 50% in Urban) and the entitlements is
5 kg /head. Earlier it was given based on the household criteria.
2. Nutritional condition of the child and mother is taken into account. Cash based entitlements of Rs.
6000 for lactating women is a welcome step.
Analysis:
The food entitlements based on household is a well thought out step. Why?
Earlier, there were cases where the targeted beneficiaries got their entitlements more than once. Say,
when two or more members of the family register themselves under different names. Now this bill is
trying to sort that out. When the family consisted more than five members, the food grains provided
were not sufficient. This move of per household entitlement has provided a better judicious way of
addressing the issue. But, the catch is if the family size is more then seven, the entitlement is
increased. This has to be considered and a reasonable upper limit will do some good to the bill.
Cash entitlements to lactating women (maternity entitlements). Is that required? If yes, then why?
This will allow the lactating mothers to feed their child properly. It will also give her some room to get
back to work as Rs. 6000 given will help her to tackle the idle time more effectively.
How identification happens??
In step 1, Planning commission identifies the amount to be given to states
2. Then the states are requested to find the households according to socio economic condition of the
state. Here the states may develop their own criteria or they can use the socio economic caste census
which is underway.

Is there any financial implication?

All social welfare measures are prone to be criticized by economists for one reason or the other. But
what we need to deliberate is whether the step taken is rational or mere populist measure for political
gain.
In this case, the expenditure on food security has increased. But if you look at the FCI (Food
corporation of India) repository, there is a huge chunk of rotten grains. As this bill has increased the
base of the delivery system (numbers entitled) and reduced the price, it puts huge pressure on the
government to move those grains more effectively. Earlier the price was higher than the proposed
one and the beneficiaries list was comparitively small.
Expenditure in the current bill - 1,24,000 crore. Before this, the subsidy was 1,09,00 crore. So it's just
an increase of 24,000 crore which is small compared to the benefits arising out of bill.
More importantly, this bill envisages the reforms in PDS (public distribution system). This brings
efficiency and reduces leakages. This will reduce hoarding by private players. It will also reduce food
inflation and in turn benefit common man. (Yeah, if those middle men didnt find any other way. But
they are more intelligent than policy makers. Isn't it?? He He :))
Is the bill a political playgame?
Bringing it in the form of ordinance and considering the timing of announcement, it is clear that the
political motive of UPA is to gain mileage. That said, the other question is whether the opposition is
allowing the parliament to run smoothly with a proper debate rather than disruption?? The real
intention of the government will be manifested only when they implement it at the ground level. Also
opposition parties were given due chance in the standing committee to express their view points. We
are not supporing the ordinance move in entirety, but we need to be pragmatic here to see whether
something beneficial is happening or not.
Is there any good model to replicate?
The models adopted for PDS system are doing good in Tamilnadu, Chhatisgarh and to a degree
Orissa. In Tamilnadu and Andhra, universalised public distribution system is in place. So, certain
measures like end to end delivery system with a clear computerisation will make it more effective.
Overall, the food security bill is a historic bill. Why it took 65 years to address the basic needs of poor
is a conundrum, the very effort is to be appreciated. Now, the government should marshall all its
resources and get it implemented on time.