Food Security Bill

ARPIT BAJPAI

SUKRIT SINGH

Contents
1. 2. 3. How the PDS works? Food Security Bill Pros & Cons

4.

Market Reactions

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Public Distribution System(PDS)

o o PDS is a Food Security System that distributes subsidized food to the poor Wheat, Rice, and Sugar(Rs 3, 2, 1)

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o o

45% of the population covered

35kg(rice or wheat) for BPL family & 15kg for APL families Expenditure-Rs 72000cr

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o o o
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Two key aspects: Procuring & Distribution

Presently, 4.99 lakh Ration Shops(FPS) Leakages during distribution Adulteration, Bogus cards, Hoarding
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How CG solves its PDS problems

o Shifting management from private players to community based organizations such as gram panchayats, self-help groups (SHG) and cooperatives. o Replacing private trucks with Doorstep delivery to ration shops. Painted in Yellow. Had to reach the FPS by 7th. Beneficiary gets an instant SMS. o MKSY(Mukhyamantri Khadyam Sahayata Yojana)- ration cards to BPL families included in 1997 but excluded in the 2002 BPL by the Planning Commission o 1.33mn under Central scheme(Antyodaya, Annapurna) o 1.9mn covered under MKSY o 88% of respondents satisfied

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Food Security Bill

o o Extends the PDS scheme to 67% of Indians. Would cost Rs 1,30,000cr

o
o o

61.23 MT foodgrains
Congress political trump card Passed in Lok Sabha on 26.08.13

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Pros vs Cons
PROS
1. 2. 3. 4. 5. Right to Food Continuance Of PDS Nutritional support Women Empowerment Existing Infrastructure
CONS

1. Credibility of PDS. 2. Cash transfer

3. Farmers Exclusion
4. Definition of Beneficiary 5. Aadhar based

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Market Reactions
oSensex down by 590.05 points, Nifty by 189. o Rupee plunged to a life low of 66.30 o Mass FII withdrawls o Benefit may go to illegal immigrants

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References
o http://www.youtube.com/watch?v=dWGrOKPz5Os o http://aajeevika.gov.in/studies/important-analysis/Reforming-the-PDS-Lessons-fromChhattisgarh.pdf ohttp://epaper.timesofindia.com/Repository/getimage.dll?path=ETM/2013/03/20/13/Img/Pc013 1300.jpg ohttp://lawlex.org/lex-bulletin/summary-of-national-food-security-bill-pros-cons-andsuggestions/1875

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Thank You

Question

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