Food Security Bill

What is Food Security?

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Who Needs it?

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Highlight of National Food Security Bill

On Sunday, 18/12/2011, the Cabinet cleared the National Food

Security Bill, 2011

People living below poverty line (BPL) has been termed as Priority

Group(PG)/Priority Household(PH): PG/PH to be allotted 7 kg grain/month/person or 35kg grain/month/family, provided with Rice @ Rs.3/kg,Wheat@Rs.2/kg, Millets @ Rs.1/kg.
The remaining of the targeted population (above poverty line) has

been termed as General Group (GG): GG to be allotted @ 3kg/person/month at half of minimum support price given to farmers.
Mid-day meal scheme and ICDS has been brought under the Bill.

The target population is LEGALLY ENTITLED to cheap grain and

 63.5% of the total population will be covered as per the Bill out of

whom 75% will be from rural area and 50% from urban area.
46% of the PG/PH in rural areas will be covered as proposed in the

Bill, whereas for urban areas the same will be 28%.

Lactating mothers will be given Rs. 1000 a month for 6 months and

also nutritional support.

Children up to the age of 14 years will get nutritional support.

Persons residing in disaster-affected areas will get 2 free meals/day

up to 3 months; non-compliance will attract penalty of Rs.5000 for the responsible public servant.
The said Bill will burden the Exchequer with an extra Rs. 27,973

crore a year. Annual food subsidy bill will go up from Rs. 67,000 crore to Rs. 94,973 Crore. Grain requirement will be 62 million tones.

Estimates suggest this could cost the government $22.3 billion or Rs. 1.1 trillion per year .

Current Stats

FLAWS IN FOOD SECURITY SYSTEM

Limited benefit to poor from PDS A large number of poor left out of the food

security system Virtual exclusion of backward states from the PDS network Inefficiencies in the operations of FCI Limited to crops like rice and wheat PDS is an expensive programme Large identification errors Leakages and diversions are substantial Prevalence of ghost ration cards Irregular delivery of grains

FLAWS IN FOOD SECURITY SYSTEM

Supply of inferior grains in ration shops The FPS are unviable The poor do not have ready cash to buy 35kg at a

time They are not permitted to buy in installments Ration shops open only 2-3 days in a month No grievance redressal mechanism Weak monitoring Lack of transparency Lack of accountability Corruption

Policy Options for Reforms

Need to overhaul the existing PDS infrastructure

Decentralized procurement and storage

Improve procedure for selection of BPL households De-privatization of PDS outlets Introduction of direct food subsidy through smart cards, 9

food coupons Consumers allowed to lift their ration quota in weekly installments Involve civil society for additional human monitoring Bring in transparency through e-governance Provide a toll free help line to register complaints on line

Conclusion:-

Give a man a fish; you have fed him for today. Teach a man to fish; and you have fed him for a lifetime

THANK YOU