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NATIONAL FOOD SECURITY BILL 2013

Avinash Kumar Mitesh Sharma Pankaj Kute Roshan Khatri

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Rangarajan was set up to chalk out the details of the proposal The Food security bill was recently passed as an ordinance in the parliament NAC and MoRD (Ministry of rural development) have also contributed significantly • • . 2010 An expert committee headed by Dr C.The background • • • The Food security bill was conceptualized by the National Advisory Council(NAC) which is headed by Mrs Sonia Gandhi Work on the proposal started in early 2007. but the framework was officially forwarded to the Prime ministers office (PMO) on October 27.

drought. flood.Need for Food Security: • • • For the poor sections of the society Natural disasters or calamity like earthquake. tsunami Widespread crop failure due to drought .

How drought affects food security Drought takes place Total production of food grains Shortage of food in the affected areas Prices Some people cannot afford to buy food = Food Insecurity .

How the Public Distribution System works: Farmers or Producers Fair Price Shops Grains MSP C.I.P Distributes Grains F.I (maintains Buffer Stocks) Allocates Grains States Central Issue Price .C.

and different dates may be appointed for different States and different provisions of this Act” .OFFICIAL MOTTO • Defines “meal” as “hot cooked meal or ready to eat meal or take home ration. by notification in the Official Gazette appoint. by ensuring access to adequate quantity of quality food at affordable prices to people to live a life with dignity and for matters connected therewith and incidental thereto” • Extends to the whole of India and “shall come into force on such date as the Central Government may. as may be prescribed by the Central Government” • Seeks “to provide for food and nutritional security in human life cycle approach.

ENTITLEMENTS Targeted Public Distribution System (TPDS) • Eligible Households = Priority Households + Antyodaya Households • 5kgs of food grains per person per month to Priority Households • 35kgs of food grains per household per month to Antyodaya Households • Subsidized prices under PDS for RICE/WHEAT/MILLETS are Rs. 6000 to be paid in installments . 3/2/1 per kg (may be revised after 3 years) • Shall extend up to 75% of rural population and 50% of urban population Children’s Entitlements • > 6 months old : promotion of exclusive breastfeeding • 6 months to 6 years old : free of cost. age – appropriate meal through local Anganwadi • 6 years to 14 years old : one free mid-day meal for students up to class VIII in all government-run or government aided schools on all school days • special free of charge meals for malnutritioned children identified by local anganwadi Entitlements of Pregnant and Lactating Women • Daily free meals during pregnancy and till six months after child birth at local anganwadi • Maternity benefits of Rs.

State Food Commission – Chairperson – Member-secretary – Five members ( 1 SC Women. 1 ST Women) Function: – Monitor and evaluate the implementation of the act – Give advice to the state government and their agencies – Look into violations of entitlements – Hear appeals against orders of the District Grievance Redressal Officer • .

District Grievance Redressal Officers Penalties and Compensation • • .Transparency and Grievance Redressal • • A two-tier grievance redressal structure. block and fair price shop levels to supervise all schemes under the act. district. involving the District Grievance Redressal Officer (DGRO) and State Food Commission Transparency Provisions – placing all PDS-related records in the public domain – conducting periodic social audits of the PDS – to ensure transparent recording of transactions at all levels – setting up vigilance committees at state.

food coupons or other schemes to the targeted beneficiaries Obligations of Government and Local Authorities – The main obligation of state governments is to implement the relevant schemes. in accordance with the guidelines issued by the Central Government – Local Authorities and Panchayati Raj Institutions are responsible for proper implementation of the act in their respective areas .PDS Reforms • • • • • Doorstep delivery of food grains ICT applications and end-to-end computerisation Leveraging “aadhaar ” for unique identification of entitled beneficiaries Introducing schemes such as cash transfer.

this figure will total up to a whooping 84*5=420 crore kg or 4.approx grain wastage in India 77 million metric tons – The amount of grain currently held by FCI (Food Corporation of India) 35% .4 million – approx yearly demand(Wheat and Rice only) 150 million metric tons – approx grain production of wheat and rice 20-25% .Technical analysis of food security bill • • • • • • With a proposed 5 kg grain distribution per person.the amount of grain that will be under government control Grain Production in India Wheat 15% Rice 8% Coarse Cereals 40% 37% Pulses .2 million metric tons 50.

he may proceed with an appeal before the SFC Introduction of internal grievance redressal mechanisms including help lines. appointment of nodal officers. as a part of State Governments’ responsibilities • • . call centers. a member-secretary. five other members (minimum two women and at least one member each from Scheduled Castes and Scheduled Tribes) TRANSPERANCY & GRIEVANCE REDRESSAL • District Grievance Redressal Officer (DGRO) and State Food Commission comprise the 2tier grievance redressal system In case of a complainant getting unsatisfactory results from the DGRO.FOOD COMMISSIONS • • Provision for creation of State Food Commissions Constitution of SFC – a chairperson. etc.

Fruits. 43. . According to NSS (National Sample Survey). Cheap grain availability will put a significant pressure on prices of nutritional foods such as Milk products. Eggs atc. This crates a problem in identifying the additional 24% target population Current PDS prices for wheat and rice are 6-8 Rs/Kg and 8-12 Rs/kg The food security bill proposes to provide wheat and rice at 3 Rs/Kg and 2 Rs/Kg respectively.Challenges in implementation of food security bill • • • • • • • The food security bill proposes to provide 75% of the rural and 50% of the urban population with subsidized grains.1% of population currently utilizes the PDS facility. This figure covers little over 67% of the population or about 84 crore population in India. Meat.

8 Trillion $ or Rs 90 Trillion 72.e 50% rise 150% -Increase in grain outlay per person (from 2.5% of the GDP .1kgs currently to 5kgs) Hence.Change in population to be covered under new scheme from existing scheme i.1 to 67% .75 Trillion Rs) plus about 150.5 Trillion Rs) is nearly equal to 4.000 crores(1.Economic cost of the food security bill • • • • • • India’s GDP in 2012 was about 1.000 crores The new food subsidy figure at about 275. the total cost burden to increase by a minimum of 275% or 200.000(2.000 – Amount Spent by government in food subsidies 43.

the subsidized price declines from Rs 5. based on greater coverage alone.000*4. average PDS consumption was 2.5) 436.With the bill.000 crore. the subsidy will increase to (100*67/44. So. Assume the subsidy in year BFSB (before the bill) is 100 NSS data says 45 per cent of the population was accessing the PDS in 2011-12. or Rs 3.000 crore. with greater consumption.5 to Rs 2.5).5 per kg to Rs 16. In 2011-12. .5/13.1 kg per person per month. or 357 The subsidy per kg will increase from Rs 13. the subsidy bill increases to (150*5/2. it will be 67 per cent.) This increases the subsidy to (357*16.5 (with weighted market price staying constant at Rs 19. or 3 per cent of the GDP.5 per kg. So. food subsidy expenditures will be Rs 72.14.• • • • • • • Government Says FSB bill will cost only 1% of GDP. So.1). the total food subsidy (government figures) was Rs 72. or 150 The NSS data states that in 2011-12. after the FSB.36.

indiatimes.html http://www.timesofindia.com/India-news/NewDelhi/Millions-go-hungry-butIndia-lost-foodgrain-worth-Rs-45-cr-in-5-years/Article1-1079235.aspx http://www.com/article/economy-policy/ccea-okays-sale-of-105-mn-tonne-fci-foodgrains-in-open-mkt-113062100269_1.business-standard.hindustantimes.References • • • • • http://www.html http://articles.com/news/foodgrain-production-in-india-to-fall-3.com/news/cnbc-tv18-comments/how-much-will-foodsecurity-bill-cost-exchequer_894551.indianexpress.5--to250-mn-tonne-due-to-drought-sharad-pawar/1071464/ http://www.moneycontrol.com/2011-06-23/india/29694205_1_foodsubsidy-food-security-act-finance-ministry .

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