A STEP CLOSER TO GURANTEEING FOOD TO THE POOR

EGoM Nod Food Bill Covering 70%

4/14/12

Need for the Bill

25% of total population is below poverty line. Failure of Antyodaya Anna Yojana scheme in 2000 and in 2005. Wastage of 50,000 tonnes of grains per year. Government wants to improve their public reputation.
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Contents

Empowered group of ministers approved the draft National Food Security Bill. Guarantees highly subsidized food grains to about 70% of the population. Will become law mostly by the winter session. Covers 75% of rural population and 50% of urban population below the poverty line. 4/14/12

Continued..

Guarantees 7 kg food/ month in the priority (below poverty line) category and 3 kg food grain/month for general category. Priority Category: Wheat @ Rs. 3/ kg Rice @ Rs. 2/ kg General Category: Less than 50% of the price paid by the state. Proposed: 90% of rural poor and inclusion of 4/14/12 Integrated Child Development Scheme (ICDRS)

Difficulties..

Implementation will require about Rs 95,000 crores, around Rs 13,000 crores more than the current year's food subsidy. Increase in Fiscal Deficit (Government's total expenditures exceed the revenue) Current situation expects only 46% rural and 28% urban BPL population to be covered. Average food grain procurement is about 55 million 4/14/12 tonnes while 61 millon tonnes is needed.

Solution

The Government needs to decrease Wheat and Rice Exports Control over Fiscal Deficit(maintain stable balance of payments and moderate interest rates) Fix the poor Food Distribution System in India The other food security schemes like Mid-Day Meals Programme and Integrated Child Development Services (ICDS) should be subsumed
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Thank You

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4/14/12