You are on page 1of 13

10/22/13

National Food Security Bill: All you need to know | Firstpost

FIRSTPOSTYOUSPEAK Firstpost Read More

FAKING NEWS

Bangalore, India 21

Here are smoke signals that PM and Sonia have fallen out 126 Comments Can BBM ever get it right? Angry users must wait to use Android, iOS app 55 Comments

Sign in

see more FRONT PAGE Politics Sports India World Business Economy Investing Life Bollywood Tech Blogs PLUS Money Tutor Currency Gold / Silver Policy Expert View Real Estate E-paper Archive Subscribe Firstpost Economy

All you need to know about National Food Security Bill


by FP Staff Aug 27, 2013 #Food security #Food Security Bill #NAC #Sonia Gandhi #UPA 1304
Like 78

10 CommentsEmailPrint

The Lok Sabha on Monday endorsed the Food Security Bill, which makes subsidised foodgrain a right for 67 per cent of the population, or 82 crore Indians. The bill is expected to cost the government exchequer Rs 1.3 lakh crore ($22 billion) every year. With this law being pegged as the Congress partys gamechanger for the 2014 Lok Sbaha elections, UPA chairperson Sonia Gandhi made a rare speech in Parliament, terming the Bill a historic step towards eradicating poverty. The food bill is meant for the less fortunate sections of our society, she said.

www.firstpost.com/economy/all-you-need-to-know-about-national-food-security-bill-1063107.html

1/13

10/22/13

National Food Security Bill: All you need to know | Firstpost

Reuters Expectedly, the Opposition has criticised the bill as an attempt by the Congress to get mileage in the run-up to the 2014 polls. This bill is half baked, but we have still decided to support it, Leader of Opposition Sushma Swaraj said. Needless to say, the timing of the Bills introduction in Parliament is such that almost all parties have found themselves compelled to endorse it. In fact, even the proponents of the Bill have criticised the Congress partys haste in getting the bill cleared without completed the required groundwork. I am quite dismayed by this ordinance and also very concerned about the possible consequences of excessive haste. A sense of urgency is certainly required, but rushing the implementation of the bill for short-term electoral gain could be counter-productive, and even defeat the whole purpose of the bill, former National Advisory Council member Jean Dreze had told Mumbai Mirror in an interview. Dreze had resigned from the council due to his differences with the Bill. Here are a few facts about the Bill: The chronology The Bill was originally conceived by the National Advisory Council headed by Congress President Sonia Gandhi, who on 27 October, 2010, forwarded the basic framework of the proposed National Food Security Bill (NFSB) to Prime Minister Manmohan Singh. The Bill envisaged covering 75 per cent of the countrys population, 90 per cent in rural areas and 50 per cent in urban areas. The prime minister set up an expert panel nder the chairmanship of C Rangarajan to study the NACs proposal. The committee estimated that the total annual foodgrain requirement to roll out the NACs recommendations covering 72 per cent of the population in the first phase and 75 per cent in the final phase was 68.76 million tonnes and 73.98 million tonnes, respectively. The panel brought down the coverage to 67 per cent of the population and suggested reforming the public distribution system. The government finally in July promulgated the National Food Security Ordinance, which has been made into a Bill now. The details The Bill seeks to offer rice at Rs 3 per kg, wheat at Rs 2 per kg and coarse cereals at Rs 1 per kg to the intended beneficiaries. Up to 75 per cent of the rural population and 50 per cent of the urban population will get 5 kg of foodgrain monthly. The poorest who fall under the Antyodaya Anna Yojana will continue with their present monthly entitlement of 35 kg of food grains. The Bill will entitle around 80 million of Indias 1.2 billion population to subsidised foodgrain under the Targeted Public Distribution System. States are given the responsibility to decide on eligibility criteria based on socio-economic and caste census (SECC) data. However, the SECC survey is likely to take six more months. Pregnant women and lactating mothers would receive a maternity benefit of at least Rs 6,000 . Children aged six months to 14 years will get take-home rations or hot cooked food. The central government will also provide money to states and union territories if it runs low on grain as well as providing them with assistance towards the cost of intra-state transportation and handling of grains. In a bid to give women more authority in running their households, the oldest adult woman in each house would be considered the head of that household for the issuing of ration cards. At the coverage and entitlement now proposed, the total estimated annual foodgrains requirement is 612.3 lakh tons and the corresponding estimated food subsidy for implementation of NFSB, at 2013-14 costs, is about Rs 1,24,747 crore. There will be state and district level redressal mechanism with designated nodal officers. Redressal mechanism may also include call
www.firstpost.com/economy/all-you-need-to-know-about-national-food-security-bill-1063107.html 2/13

10/22/13

National Food Security Bill: All you need to know | Firstpost

centers, helpline etc. The Bill provides for penalty to be imposed on public servants or authority, if found guilty of failing to comply with the relief recommended by the District Grievance Redressal Officer Merits and demerits Crisil Research believes the proper implementation of the Bill will lower spending on foodgrains by below poverty line households, and free up resources for spending on other goods and services, in particular health, education, and nutritious food. It sees the Bill enabling an additional savings of around Rs 4,400 this year for each BPL household that begins to purchase subsidised food. This savings equals around 8 per cent and 5 per cent of the annual expenditure of a rural and urban household, respectively. For rural households the savings amount exceeds their current annual medical and educational spends. Higher disposable income would also allow BPL households to spend more on protein-rich food, thereby improving their nutritional intake, Crisil said. However, the research house has said key to accruing all these benefits is the proper implementation. While the benefits of the Bill could go well beyond just the provision of food, the success of the scheme and its welfare impact lies in identifying the poor and making sure that they are able to avail the food subsidy, it said. Many critics of the scheme converge on this point. They say beneficiaries do not stand to gain as about 40 percent of rice and wheat earmarked for the poor gets siphoned off due to corruption. An inefficient distribution channel also leads to waste. Implementing the bill in a fair, equitable and transparent manner is going to be a big challenge for the government. Many agriculture experts believe that Food Bill which proposes to provide grains to people at very cheap rates may discourage the agriculture production in the country. Hence it must make sure that farmers should not be burdened with the cost of subsidising the supply. Economists have raised concerns about the cost to the exchequer at a time when the government is struggling to bridge the fiscal and current account deficits. Fitch Ratings has said it was getting more challenging for India to meet its fiscal deficit target in the current fiscal year ending March 2014 with revenues slowing, Reuters reported today. Economists of the Governments Commission for Agricultural Costs and Prices (CACP), who define the roadmap of agricultural policies, have calculated additional subsidy burden of Rs 1.20 lakh crore per annum from the existing Rs 90,000 crore The Centre intends to delegate the task of construction of additional storage to the states, which may not be practically feasible given constrained centre-state relations among diverse political parties. The government does not even have enough storage capacity to store the amount of grain that it currently procures and will have to procure from the farmers in the years to come. So more grains could be dumped in the open and will rot as a result. Experts believe the rush to pass the bill implies the intent is nakedly political. ALSO SEE

Food Bill is the biggest mistake India might have made till date

Live: Sensex ends more than 300 points higher, rupee pulls back to 67

RTI, RTE, NREGA, Food Bill: How Sonia defined UPAs legacy RELATED VIDEOS

www.firstpost.com/economy/all-you-need-to-know-about-national-food-security-bill-1063107.html

3/13

10/22/13

National Food Security Bill: All you need to know | Firstpost

MP: Rahul makes emotional plea but fails to inspire

Let Priyanka contest 2014 polls from UP: Congress' Allahabad unit

Haryana targets Ashok Khemka again, to file second chargesheet


Morefromtheweb
A Sad Day for Dogs in MissouriHouse Votes to Repeal Prop B ASPCA Blog How Sharp Are Your Job-Hunting Skills? Kiplinger Buchanan says Congress should not be paid during shutdown The Ripon Advance Global slave trade being encouraged by British shoppers, tycoon warns | The Times Slavery index reveals our dark side bangkokpost.com

MorefromFirstpost
Glad Sachin didnt make me look like a fool: Sunil Gavaskar Sports No leadership, falling support: Is it end game for Lalu and RJD? Politics MBA loses its sheen; CAT registrations dip to 5-yr low in 2013 Economy What have Rahuls grandfather, mother done, asks Venkaiah Naidu Politics No jobs for young India: Economy worse than during 2008 crisis? Economy
Recommendedby

CLOSE X Firstpost encourages open discussion and debate, but please adhere to the rules below, before posting. Comments that are found to be in violation of any one or more of the guidelines will be automatically deleted: Personal attacks/name calling will not be tolerated. This applies to comments directed at the author, other commenters and other politicians/public figures Please do not post comments that target a specific community, caste, nationality or religion. While you do not have to use your real name, any commenters using any Firstpost writer's name will be deleted, and the commenter banned from participating in any future discussions. Comments will be moderated for abusive and offensive language. Please read our comments and moderation policy before posting
Comments for this thread are now closed.

0 Share

10 comments
Newest Community VARMA
2 months ago

National Food Security Bill Ideal or Quasi ?


www.firstpost.com/economy/all-you-need-to-know-about-national-food-security-bill-1063107.html 4/13

10/22/13

Ideal or Quasi ?

National Food Security Bill: All you need to know | Firstpost

The National Food Security Bill, 2013 is a direct admission by the Congress party that it could not or, more accurately, was not willing to provide food security to 67 per cent of the Indian population ( which includes 75 percent rural and 50 percent urban) even though it has been in power at the centre for over 57 years. Thus the Congress party failed miserably to provide full food security for the poor people of India in the past. Let us examine what the NFS Bill promises to do in the future. The Bill promises to provide 5 kilograms of rice/wheat per head per month which means a mere 166 grams per day or 83 grams per meal. However the minimum daily requirement of cereals (wheat/rice) is 450 grams per adult per day (for one who does moderate amount of work). Those people who do heavy work need 600 grams per day.
see more

Share

Srinivas Balla

2 months ago

This is a historical mistake. No doubt! This is a clear indication that India is heading for biggest recession ever world seen! Public Distribution System in states itself is in a very bad situation and widening it into national level is nothing but an official encouragement for manipulators. It's so surprise to learn that the government doesn't even know that people are not buying food grains from PDS, if at all they do, it is occasional. Don't they know how much corruption takes place each an every ration shop? Every person in society hates to get subsidized food. It's another form of insulting. With this bill, the Government encourage lazy people, over-dependence on it, eliminating self-sufficiency. Government should have tried to bring down prices and create a better feeling than this ultra corrupt bill. Where is the money? Government has to pay billions of rupees for New States (ex: Andhra Pradesh), billions for this bill, billions for imports and billions made by common man and companies already dried in the name of dollar rupee game. How can a big democratic country fall in the hands of these gamblers? Only God save this country.
Share DevourCatering

2 months ago

this will be interesting to watch and I really hope they don't provide rotten grain
Share raj

2 months ago

Don't worry my fellow Indians. They can give rice at Rs 3 per kg, wheat at Rs 2 per kg and coarse cereals at Rs 1 per kg. But what about the quality of grains. There is no guarantee on the quality. I have seen BPL rice which is sold at Rs 2 per kg. Even insects won't eat it. Same thing would happen here also. They will provide rotten rice, wheat and cereals so that poor can die more quickly.
Share Vote2014

2 months ago

the NAC mentioned in the article which is headed by Sonia is a source of all these schemes. I wish both that planning commission and NAC especially is abolished. Montek is worse, Sonia is the biggest enemy of India
Share Gautam
Vote2014 2 months ago

At least Montek's low definitions of poverty limit the scope for such money-wasting socialist scams. Sonia on the other hand is well aware of the real situation and how to exploit it to the maximum level for votes without changing the status quo.
Share Vote2014
Gautam 2 months ago

True, so it all boils down to the wisdom of voters now - NOW is the time to route this useless govt out for good!
Share

www.firstpost.com/economy/all-you-need-to-know-about-national-food-security-bill-1063107.html

5/13

10/22/13

National Food Security Bill: All you need to know | Firstpost


Prem Rou

Avatar

2 months ago

Please clarify whether true or not ? . In case of distress , floods, droughts etc when there will be real shortage , no food security will be applicabel. in short "hamein milega "thenga".
Share

Avatar

Veeresh

2 months ago

After freedom, all politics was on Roti, Kapada and Makkan. Now, it time to move. So, the politics now is on Food, Cloth and House! Great going!!
2 Share

Avatar

Gado

2 months ago

Please correct the spelling for India on the first paragraph "...82 crore Imdians"
3 Share

ALSO ON FIRSTPOST

WHAT'S THIS?

Baba Ramdev not important enough to conspire against: Digvijaya


8 comments 5 hours ago

Here are smoke signals that PM and Sonia have fallen out
110 comments 4 hours ago

jnp No Stature.......4 Cabinet ministers go begging to him

Pradeep Malayil My son and his future is more important

at the airport.Who are you fooling Dig Dig Raja

to me... I don't care of reputation of the PM or future of the

Delhis first time voters want Dikshit out, unsure between BJP and AAP
64 comments 4 hours ago

Delhi Congress seeks OBC support in Assembly polls


1 comment 4 hours ago

anony OBC, Muslims, Majority, Minority.. All Indians.. If

aapka AAP ki andhiNa chalega Modi na Gandhi

you really think about the welfare of your country..

Subscribe

Add Disqus to your site

Search Firstpost..

Submit

MORE FROM ECONOMY 1 Delhi luxury real estate may plummet as country homes are the new flavour 2 Govt may ban onion exports as prices rise to Rs 90 3 Rising bad loans unacceptable, says Chidambaram 4

www.firstpost.com/economy/all-you-need-to-know-about-national-food-security-bill-1063107.html

6/13

10/22/13

National Food Security Bill: All you need to know | Firstpost

Happy that more Chinese firms are looking to invest in India: PM 5 PM seeks China investment, mulls Chinese biz park in India

The10biggeststories, handpicked for your inbox.

Email Address

The fight over Goel and Harshvardhan has destroyed BJP's chances in Delhi politics
I AGREE I DISAGREE

Share Tweet 1 27,359Indians have participated in our online poll have you? x Newsletters Please check the newsletters you wish to subscribe to Today's Headlines While you were sleeping Big Story Politics Daily Tech Weekly Business Wrap Sports Daily
Your email id...

17 Comments

Editor's picks
Today Yesterday Fri 10.18 Thu 10.17 Wed 10.16 Tue 10.15

www.firstpost.com/economy/all-you-need-to-know-about-national-food-security-bill-1063107.html

7/13

10/22/13

National Food Security Bill: All you need to know | Firstpost

Dangerous signs: Is Bihar moving back to era of bloody caste wars? Acquittal of all accused in four Dalit massacre cases by the high court has ignited an old war.

Exclusive: Gopichand on his quest for the next Gopichand In this interview, he talks about everything ranging from his coaching style, the challenges India faces as they rise in the sport and most importantly, his quest for the next Gopichand.

Can BBM ever get it right? Angry users must wait to use Android, iOS app While most first reactions point to the BBM re-launch being welcomed favourably, with many users going on to say that the month delay in the rollout of the BBM has been worth the wait, there are many others who are not yet satisfied with the application.

Coalgate: PM not off the hook even if CBI closes probe against Birla The PMs statement on the coal blocks allocated to Hindalco may be enough to close the case, but the thing to watch is what happens to the case against PC Parakh.

Coalgate: PM not off the hook even if CBI closes probe against Birla
www.firstpost.com/economy/all-you-need-to-know-about-national-food-security-bill-1063107.html 8/13

10/22/13

National Food Security Bill: All you need to know | Firstpost

The PMs statement on the coal blocks allocated to Hindalco may be enough to close the case, but the thing to watch is what happens to the case against PC Parakh.

Would Competition Commission have the guts to bust jewellers cartel? The truth is there is no back-to-back relationship between the ruling market price of the yellow metal and the gold used in making the jewellery just sold. Like any other manufacturer, jewellers too stock up the raw materialin their case bullionso much so that in a rising market they always make a profit. Value addition in any case is relatively insignificant.

Rajesh Bhatia's story: Why India's airports aren't truly international India Gandhi International Airports T3 terminal, is known for its swanky interiors and modern architecture, but when it comes to security personnel training at the airport, the standards are truly of the past.

The contradiction that is Ishant Sharma You cant count on Ishant Sharma to run through a side, take wickets with the new ball or keep the scoring rate down at the death. But you can count on him to play.

Why Prince Charming Rahul Gandhi can't win votes for Congress The accusations of incompetence against Rahul again is solely based on the Congress performance in the government over the past nine years.

www.firstpost.com/economy/all-you-need-to-know-about-national-food-security-bill-1063107.html

9/13

10/22/13

National Food Security Bill: All you need to know | Firstpost

Why Raghuram Rajan has to deliver a kick in UPA's pants The only institution that can act to stem inflation right now is the RBI. Raghuram Rajan has a unique opportunity to deliver the system a shock by raising interest rates by a larger-than-expected 0.5-1 percent. Politicians no longer have the credibility to act

Shamed and scarred: Stories of 'legal' abortions in India Abortion in India is legal in name only. It is most often a painful, shaming experience that often causes permanent medical damage.

Katiyabaaz: Documenting Kanpur's battle for electricity This documentary about the terrible power situation in the industrial centre of Kanpur unfolds with all the drama and charm of a feature film.

Debt ceiling absurdity: How the US Fed is running a ponzi scheme This is a perfect Ponzi scheme where the government is paying off old debt by issuing new debt.

Modi-led BJP now has momentum to cross 200 in 2014


www.firstpost.com/economy/all-you-need-to-know-about-national-food-security-bill-1063107.html 10/13

10/22/13

National Food Security Bill: All you need to know | Firstpost

The momentum is building for BJP in the run-up to 2014. The imponderables are UP and Bihar, but even here there is a pro-Modi trend.

Live: Respect the dead, says Rahul; Chouhan hits back We track the latest developments as Congress Vice President Rahul Gandhi attends a rally in Madhya Pradesh.

Coalgate: Why the CBI's decision to file an FIR against Birla isn't wrong The CBI hasnt erred in filing the FIR given the implication of impropriety but it should have filed it against all those who may be culpable.

Coalgate: logic of naming KM Birla is to tar system and maybe save PM The CBIs decision to name Kumar Birla in an FIR related to the Coalgate scam smells fishy.

Jamiat chief Madani destroys Congress' Rahul vs Modi game plan Madani is generating a debate on the prevailing politics of negativity and telling the Muslims that it is them who should decide on who is secular and who is not, instead of being told by Congress or other secularist parties.

www.firstpost.com/economy/all-you-need-to-know-about-national-food-security-bill-1063107.html

11/13

10/22/13

National Food Security Bill: All you need to know | Firstpost

Tendulkar at Wankhede: It's not about the stats, it's about sentiment Tendulkars home ground of Wankhede has been selected as per the master batsmans wishes.

Review: Akshay Kumar's Boss is shameless and mediocre It is shamelessly mediocre cinematic swill posing as masala entertainment.

Without AAP, BJP would win Delhi elections, says expert Delhi is a month away from assembly elections, and all three parties (BJP, Congress and AAP) are vying for an advantage. Where the state ruling party Congress is dealing with a wave of anti- incumbency sentiment, the BJP is struggling to contain party infighting, and contend with its biggest drawback: the lack of a strong []

Vadra's biceps and Modi's kurtas: Politics of fashion Mirror, mirror on the wall, whos the fairest of them all? Our political movers and shakers might not dress flashily but it doesnt mean they dont worry about their looks. Whether its Modi pondering new style choices, or Robert Vadra keeping his biceps and under a suit in India, our men dress to impress.

www.firstpost.com/economy/all-you-need-to-know-about-national-food-security-bill-1063107.html

12/13

10/22/13

National Food Security Bill: All you need to know | Firstpost

1 November: Buy iPhone 5s for Rs 54,000, 5c for Rs 42,000 in India It has been confirmed that Apples iPhone 5 is coming to India on 1 November, and that the device will be sold by Airtel and RCom. The iPhone 5s will cost Rs 54,000 while the cheaper iPhone 5c will cost Rs 42,000.

US debt debate is hogwash: Uncle Sam has already defaulted The argument between Democrats and Republicans over the US debt ceiling is really meaningless: it is guns versus butter as against guns versus margarine. Nothing significant.

Submit

About Firstpost Verticals: Front page Plus: New Delhi Tools: Sitemap

Newsletter

RSS

Twitter

Facebook

India

Politics

World

Business

Economy

Investing

Life

Bollywood

Sports

Tech

Blogs

Mumbai

Photos

FP Exclusives

Cartoons

Video room

eBooks

Election

Weather

RSS Feed

Online Study Material

Business Technology News

MTV India

Online Shopping in India

[+] Hot Topics: Copyright 2013 Firstpost All rights reserved Terms of use Privacy Advertise moneycontrol.com ibnlive.com in.com tech2.com cricketnext.com

www.firstpost.com/economy/all-you-need-to-know-about-national-food-security-bill-1063107.html

13/13