Presented by:
N. Lohith BAM-12- 38

Major Advisor :
Dr. Y. Radha Principal Scientist, WTC, ANGRAU, Hyderabad

Dr. D. Vishnu Sankar Rao Professor and University Head

1. Introduction to Food Security 2. Need for NFSA 3. Back ground of FSA 4. Salient features of NFSA 5. Food grains required for FSA 6. Cost of NFSA implementation 7. Food security programs in different states 8. Chattisgarh FSA Vs National FSA 9. Consequences of Food Security Act 10. Criticism of NFSA 11. Suggestions 12. Conclusion


woman and child has the inalienable right to be free from hunger and malnutrition in order to develop fully and maintain their physical and mental faculties” 4 .• Human concern for food security is as old as humanity itself • The issue of food security became an international concern when world food conference in Rome (1974) adopted food security as its main topic • Declaration of this conference was that “every man.

Its essential elements are the availability of food and the ability to acquire it” 5 . healthy life.DEFINITION OF FOOD SECURITY FAO DEFINITION (1983): ―All people at all times have both physical and economic access to basic food they need” WORLD BANK DEFINITION (1986): “Access by all people at all times to enough food for an active.

Weather. markets & prices in achieving food security objectives Security The way the body makes the most of various nutrients in the food. political conditions or economic factors have an impact on food security status. food preparation. stock level & net trade. determined by the level of food production. expenditure. diversity of diet & intra-household distribution of food. Food Utilization Stability of the other 3 dimensions over time Access on a periodic basis.Four dimensions of Food Security Physical Availability of Food The supply side. Involves care & feeding practices. Economic & Physical access to Food Food Adequate supply of food does not guarantee household level food security. 6 . Food access depends on incomes.

1 Crop Rice Wheat Coarse cereals Total cereals Pulses Total food grains Oilseeds Sugar Vegetables Fruits Milk 2011-12 105.09 259.42 127.3618 18.Physical Availability of Food (in million tonnes) Table no.23 17.40 133.72 26.31 94.32 29.445 79.88 42.22 93.325 76.36 30.52 237.00 156.62 39.60 156.9 Source:-RBI Hand Book on India Economy 2011-12 2012-13 104.04 242.79 24.00 255.7 7 .

83 30.00 23.00 tonnes) 82.81 80.32 255 270.70 82.39 200001 84.58 11. 8 .93 43.83 196061 34.68 Production (million 60.98 69.5 18 255 -30. 2011-12. RBI.00 23.88 104.09 259.24 244.32 85.00 0.38 8.42 198081 53.14 32.00 244.32 201213 104.62 170.Figure 1: Trend in Production of Food grains 120.59 199091 74.59 108.00 55.83 129.62 39.26 176.14 70.32 85.81 201011 95.31 94.00 Rice Wheat 50.46 15.88 42.31 29.22 23.58 36.82 108.68 18.00 259.63 36.02 40.00 Source: Hand book of Indian Economy.22 93.00 220.31 94.00 196.29 55.00 Rice Wheat Coarse Cereals Pulses Food grain 195051 20.41 50.00 176.55 11.70 14.93 105.74 12.63 129.68 31.00 Coarse Cereals Pulses Food grain 20.78 201112 105.39 84.31 74.04 17.07 196.63 42.83 20.22 34.42 53.02 10.58 6.78 100.29 120.02 197071 42.98 69.08 11.00 95.22 93.00 20.58 11.

2012 .0 1960-61 1970-71 64.9 173.6 157.1 10.7 9 Source: Indian Economy.8 2010-11 176.5 13.4 168.3 14.9 9.3 Pulses 8.3 12.3 1980-81 1990-91 2000-01 2005-06 2006-07 2007-08 2008-09 2009-10 104.7 17.4 12. 2 Year 1950-51 Cereal 44.7 165.6 84.8 145.0 11.9 11.Net Availability of Cereals and Pulses (in million tonnes) Table no.8 168.7 145.Gaurav Datt and Ashwani Mahajan.7 13.6 15.

3 Commodity Total cereals Pulses Per capita availability 528.73 54.86 297.78 568. 2012-13 (in gram per day) Table no. Hyderabad .70 Minimum per capita requirement 400 80 46.Per capita availability.47 176.81 Source:-National Institute of Nutrition.79 Total food grains Oil Sugar Vegetables Fruits Milk 480 30 20 300 150 300 10 39.79 348.

11 .

9 million undernourished people (FAO 2009) • 49% of the world’s underweight children (WHO 2009) • 34% of the world’s stunted children (WHO 2009) • 32. Niger.25 per day (PPP) while 68. 12 . • 29% of the 872. India ranked second to last on child underweight out of 129 countries— below Ethiopia.7% live on less than US$ 2 per day (World Bank 2010) • According to the latest data on child under nutrition from 2005– 10..• India ranked 10th largest Economy of world on nominal GDP basis and 3rd largest economy on PPP basis But India has…………. Nepal. and Bangladesh.7% of all people in India fall below the international poverty line of US$ 1.

13 .Global Hunger Index This index basically measures malnutrition and hunger based on three parameters  Proportion of people who are undernourished  Proportion of children under five who are underweight.  The Child mortality rate.

70 23.90 Alarming Alarming 2010 2011 67 67 84 81 24. 4 Year Rank in Hunger index Out of total no.10 24.9 Alarming Source:-Global Hunger Report. Alarming Alarming 2008 2009 66 65 88 88 23. IFPRI 14 .2 Alarming Alarming 2012 65 79 22.03.India’s status on Global Hunger Index Table no.73 25. of countries 118 Score Status 1990 2007 94 31.

0 24.4 23.9 44.3 17.1 21.7 47.3 23.3 36.6 6.4 38.6 19.0 18.6 23.5 42.7 37.0 28.5 27. IFPRI .6 40.6 14.4 39.6 15.4 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 15 Source:-Global Hunger Report.1 6. 5 State Punjab Kerala AP Assam Haryana Tamilnadu Rajasthan West Bengal UP Maharashtra Karnataka Orissa Gujarat Chhattisgarh Bihar Jharkhand MP India Prevalence of calorie Under weight children Under 5 mortality rates Indian state undernourishment (%) below 5 years (%) (deaths /100 Lives) hunger index rank 11.8 42.5 9.6 22.4 7.2 1.6 56.1 28.1 57.0 8.Major states at hunger index and the underlying components Table no.4 20.3 9.6 4.1 59.5 8.1 29.5 5.1 14.2 3.7 32.3 8.3 19.5 9.9 9.7 5.5 14.5 5.7 36.1 9.5 5.7 30 40.

16 .

Back ground of food security movement…. 17 .

18 .Supreme Court declared that the right to live guaranteed in any civilized society implies the right to food.the Court ordered that Below Poverty Line (BPL) families be entitled to 35 kg of food grains per month at subsidized prices. • 2001.• 1996.the Court ordered the implementation of eight centrally sponsored schemes as legal entitlements. These include Public Distribution System (PDS) Antyodaya Anna Yojana (AAY) The Midday Meal Scheme (MMS) Integrated Child Development Services (ICDS) • 2008 .

including reducing the proportion of the population entitled to benefits and computerizing PDS.the National Advisory Council (NAC) drafted a National Food Security Bill.• Then the National Food Security Bill had a stopstart journey. Here’s a timeline of its.an Expert Committee set up by the Prime Minister under the chairmanship of Dr. • Oct 2010 . 19 . C. proposing legal entitlements for about 75 percent of the population. • Jan 2011 .. Rangarajan examined the Bill and made several recommendations..

The Cabinet discussed on approving the food security law through an ordinance. • 19 Mar 2013.Union Cabinet approves an amended draft • 4 June 2013.A parliamentary panel sends the draft back to the food ministry to incorporate changes after consulting with state governments. • 4 July 2013 .• July 2011.A ministerial panel gave its approval to draft food security Bill • Jan 2012.Cabinet approved the food aid program as an ordinance.The Bill was referred to the Parliament Standing Committee on Food • Nov 2012. 20 .

With this the NFSB 2013 became the Act and gave the majority of those living in India the right to subsidised food grains.the bill was passed in the LokSabha • 2 Sept 2013.received the assent of the President of India.• 26 Aug 2013.the bill was passed in the Rajyasabha • 10 Sept 2013. 21 .

Salient features of NFSA…. 22 .

23 .The National Food Security Act. 2013 aims to provide for food and nutritional security in human life cycle approach. by ensuring access to adequate quantity of quality food at affordable prices to people to live a life with dignity.

Public Distribution System:  Priority households are entitled to 5 kgs of food grains per person per month.  2.  The combined coverage is up to 75% of the rural population and up to 50% of the urban population. (67%) 24 .  The Bill will cover around 810 million citizens.43 crore Antyodaya households to get 35 kgs.Entitlements….

Children who suffer from malnutrition will be identified through the local anganwadi and meals will be provided to them free of charge. through the local anganwadi. children in the age group of 6 months to 6 years. free midday meal will be provided every day in all schools run by local bodies. government and govt aided schools. the Bill guarantees an ageappropriate meal. up to Class VIII. 25 . free of charge. children aged 6-14 years.Children’s Entitlements….

Entitlements of Pregnant and Lactating Women….
Every pregnant and lactating mother is entitled to a free meal at the local anganwadi (during pregnancy and six months after childbirth).

Maternal benefits of Rs 6,000, is given in instalments (maternal benefits to a pregnant woman beyond two live births is denied) .

Identification of Eligible Households….
The Central Government is to determine the state-wise coverage of the PDS, in terms of proportion of the rural/urban population. Then numbers of eligible persons will be calculated from Census population figures. The identification of eligible households is left to state governments. The lists of eligible households are to be displayed publicly by state governments.

Food Commissions…
The act provides for the creation of State Food Commissions Each Commission shall consist of a chairperson, five other members and a member-secretary (including at least two women) The main function of the State Commission is to monitor and evaluate the implementation of the act, give advice to the state governments and their agencies, and inquire into violations of entitlements.

 Doorstep delivery of foodgrains  ICT applications and end-to-end computerisation  Using aadhaar (UID) for unique identification of entitled beneficiaries  Full transparency of records  Preference to public institutions or bodies in licensing of fair price shops. 29 .PDS Reforms….

For the purpose of issue of ration cards. the eldest woman (above 18) shall be the head of the household.Women Empowerment…. 30 .

 Central Government : provide food grains (funds) to state governments to implement the main entitlements. in accordance with the guidelines issued by the Central Government.Obligations of Government and Local Authorities…. from their own resources  Local Authorities and Panchayati Raj Institutions are responsible for proper implementation of the act in their respective areas 31 . It also has to provide assistance to state governments to meet local distribution costs.  State governments : implementing the relevant schemes. They are free to extend benefits and entitlements beyond what is prescribed in the Bill.


thus not very viable Often sub-standard quality of food grains.Mechanism Advantages Insulates the beneficiaries PDS from inflation and price volatility The food grain entitlement can only be used to prepare food Disadvantages Fair price shops have low margins. Adulteration of food grain Well-developed network of FPS ensures access to food grain even in remote areas Large leakages and diversions of subsidized food grain 33 .

storage and distribution facilities The household has freedom to go to any PDS shop. It might promote quality of grains as well as service Disadvantages Requires extensive banking network Cash can be used to buy non food items May expose recipients to price volatility and inflation Smart Cards/ Food Coupons Needs computerization and networking of PDS shops 34 .Mechanism Cash Transfer Advantages Cash in the hands of poor expands their choices and relieves financial constraints to some extent Potential for fully electronic transfer Cash transfer programs involve low administrative costs because it does not need procurement.

6 33.6 2.5 crore household assuming 5 persons per household) Estimated requirement for OWS Additional requirement for protecting the average annual offtake of states Total Annual Requirement Monthly requirement (Annual Requirement / 12) 1.4 2.3 27.8 3.2 5.2 mt of cereals Table no.1 35 Source: Ministry of consumer affairs.6 3.5 2. 6 (in mt) wheat 22.8 Item Requirement for the Beneficiary population (67% of 1. The (NFSB) require of about 61.6 2.215 Billion people @ 5 kg grain per person) Additional requirement for AAY (@ 2 kg grain for 2.9 1.Food Grains Required for the Food Security Bill….0 rice 26.0 6.8 total 48. food and public distribution .3 1.6 1.9 61.

our 82.44 million tonnes and rest shall be for other institutional arrangements.4 crore of targeted people require only 49. 36 .•The annual food grain requirement for implementing the National Food Security Act is estimated at 61 million tonne. •Out of this proposed 61 million tonnes of food grains.

Figure 2. Stock position of food grains in the Central Pool vis-a-vis minimum buffer norms Source : FCI 37 .

Procurement.Figure 3. allocation and off-take of food grains (in LMT) Source : FCI 38 .

Cost of NFSA implementation 39 .

 About 62 million tonnes of food grain will be needed under the food bill. The Food Bill will cost around Rs 1. the subsidy cost will keep increasing annually.3 lakh crore annually which is about 1. 40 .1% of GDP.  Even if the grain quantity remains fixed each year.

crores) 40.000 20.000 60. Cost of food subsidy Cost of Food Subsidy 140.000 80.000 0 Year Source : CACP 41 .Figure 4.000 100.000 120.000 Amount (Rs.

or say Rs 10.30 lakh crore each year  India is already spending Rs 1.635 crore. a much bigger amount is wasted annually by way of rotting food grains stocked under FCI Thus.16 lakh crore on schemes that are listed as entitlements under the FSB. food subsidy (Rs 85.  In reality. Integrated Child Development Scheme (Rs 17.25 – 1.700 crore) maternity entitlements (Rs 450 crore).000 crore).000 which is hardly significant in comparison with the GDP numbers. the additional expenditure is around Rs 8.215 crore). 42 . The cost of the bill is likely to be Rs 1. Thus. it is wrong to say that the Food Bill will incur any extra significant expenditure by the government. midday meal scheme (Rs 13.

the figure for Chhattisgarh is 40 percent and nearly 20 percent at the all-India level.  Several Indian states have been running their own food security programs. Most recently.  60 percent of the poverty gap has been wiped out in Tamil Nadu. 43 . Chhattisgarh has emerged as a model state in terms of running the food program most efficiently.Food Security Programs of different states….  Tamil Nadu has perhaps the best run system in the country.

The scheme benefits 2.24 lakh tonnes are provided.  Antyodaya families get 35 kg per family. while other BPL families get four kg per person subject to maximum of 20 kg The state spends Rs 2.600 crore as subsidy for rice at Rs 1.Andhra Pradesh first introduced a Rs 2-per-kg rice scheme in 1985 In 2011. the state government introduced good quality rice under PDS at Rs 1 per kg for BPL families. 44 .70 crore families. Some 3.

sugar at Rs 13. ½ kg sugar. 1 kg wheat.  It includes 1 kg toor dal. ¼ kg chilli powder. kerosene at Rs 15 per litre. ½ kg tamarind and 100 gm turmeric powder. palm oil at Rs 40 per litre. The government also subsidizes red gram dal at Rs 50 per kg. 1 kg whole meal atta. and wheat at Rs 7 per kg. against an actual cost of Rs 292.  "Amma Hastham" scheme was launched in 2013 under which the government provides nine essential commodities — four more than were being provided earlier — in a packet through ration shops every month for Rs 185. 1 kg salt.50 per kg. 1 litre palm oil. 45 .

46 . 2012 Chhattisgarh became the first state to have its own food security Act It is seen as a model for other states in effectively implementing food bill. The bill covers around 42 lakh families.The Chhattisgarh Food Security Bill.

b) Gram Panchayats will be allowed to run ration outlets. etc 47 .  To prevent leakage and corruption a) Computerization of records and publication of all beneficiaries and benefits given to them. Panchayats and Municipalities will be responsible for implementation of the Act. c) Vigilance committees d) Social audits by the Gram Sabha.  Entitlements will be given on the basis of per household and not on per person.

No IT services yet announced .Chhattisgarh food security 2012 Food grain entitlements Antyodaya and prority (per households) General Type of entitelments Antyodaya 35 kg food grain at Rs 1 & 2/Kg 2 kg iodized salt 2 kg black gram at Rs 5/kg(tribal) 2 kg pulses at Rs 10/ kg(tribal) 15 kg food grain at RS 15/kg Only on household basis National food security bill 2013 5 kg per person per month 35 kg food grain per household No provision of noon food grain item Antyodaya only on household basis All others on per person basis Only poorest of poor Include vulnerable group Destitutes and homeless PDS reform Free meal Use IT and SMS services No provision Deliver to doorstep of PDS.

49 .

 Right to food become a legal right.  Reduction in malnutrition  Increase purchasing power of poor people as they can spend money on other basic needs 50 .The proposed bill aims to provide legal right over subsidised foodgrain to 75 per cent in rural areas and 50 per cent in urban areas  Food and nutritional security for people who don’t have access to food at a subsidized rate.  Food at very cheap rates of between one and three rupees per kilogram to up to 70% of the population.  Subsidized food to pregnant women and children under the age of 16.

This has prevented further wastage of money to develop the infrastructures. 51 . Continuance of Antyodaya Anna Yojana (AAY) – Protection to 2.  Bill seeks to utilize already existing infrastructures like PDS and aganwadi’s.43 crore poorest of poor families under the Antodaya Anna Yojana (AAY) to supply of 35 kg foodgrains per month per family would continue.

• Bezbaruah (2013) opinioned that the successful implementation of this ambitious food security program will weave a meaningful safety net for a vast majority of Indians who eke out their living in the unorganized sector virtually devoid of any social security system to fall back upon . 52 .

which is likely to lead to an over-supply of grain and a collapse in prices. 53 .Negative impact  The very low prices of the subsidized food will distort the market and farmers who can’t sell to the government-assured program will lose out on the open market because prices will be forced down.  Small land holdings farmer diverted from food grain production. Corrupt intermediaries who often run the public distribution system could then pay farmers off for their share of grain and sell it in the open market.  Some farmers who don’t need subsidized grain because they grow it.

As international prices are far above domestic prices.Contd…  Inadequte food production In bad agricultural years. the subsidy bill will bloat even more 54 . Since India is not normally an importer. the country may have to import food. even a small order of 5-10 million tonnes will rock the international markets.

oilseeds and cash crops. states need to identify the beneficiaries  The Bill does not categories properly between BPL and APL and both are entitled to 5 Kg grain per person per month. 55 .Challenges  Lead to some impact on the farm sector as the Bill’s focus on cereal and food grain production ―may distort the farm production structure by not providing the right incentives for other crops such as pulses.

Haryana and Punjab UP & Rajasthan Bihar.TN & West Bengal.Kerala. Gujarat. TN and west Bengal Bihar. Gujarat. Orissa.Ktk.Orissa.HP &MP.MP.Maharashtra. 7 Leakages from PDS Percent Abnormal leakage Very high leakage Low leakage A>70 % 25-50% <25 % >50% 25-50% 10-25 % <10% >30% 10-50% <10% Type of leakage Total leakage States Bihar and Punjab Assam.Haryana. Assam. Bihar. Orissa. Maharashtra.Punjab. Gujarat. Rajasthan and TN Leakage at fair price shop Very high leakages High leakage Moderate leakage Low leakage Very high Leakage High leakage Moderate leakage Leakage through ghost card Source: Planning Commission Government of India New Delhi 2005 56 . Himachal Pradesh. Maharashtra and Rajasthan AP.HP.TN and West Bengal Assam. Uttarpradesh and west Bengal AP. KTK. Orissa.Table no. Kerala. Karnataka.

04 227.14 92.73 246.57 347.37 364.49 326.22 480.32 12. 8 Food Grains not reaching the poor house hold MP Maharashtra Orissa Punjab Rajasthan 365.02 100.53 120.81 192.80 407.79 266.14 139.89 150.47 138.10 TN UP West Bengal 16 states total 525.24 366.88 38.59 219.44 125.43 90.00 Table no.13 320.08 340.58 268.25 238.77 277.62 227.16 336.24 416.91 248.29 276.00 128.95 285.24 169.27 175.43 241.19 160.89 159.75 57 Source: Ghumaan and Dhiman(2013) .00 181.Diversion of Food grains (kg/BPL Family/annum) State AP Assam Bihar Gujarat Haryana HP KTK Kerala Off take by States 466.37 226.76 138.25 344.53 124.78 380.51 263.16 490.58 Off-take by identified BPL families 197.16 492.

The Major reasons for leakage are: Inclusion Error Ghost Cards Shadow Ownership Non-accountability of FPS .

59 .

Gap in Storage Capacity with FCI Source : CAG 60 .Figure 5.

This is a mega program and will require a huge food subsidy. The cost of it will go up from 0.  Given the rising costs of the scheme and rising population.8% of Gross Domestic Product to around 1. the challenge facing the country is to produce more and more from diminishing per capita arable and irrigation.1% of GDP.5 billion by 2030. its sustainability is under question. India’s population is likely to reach 1. This is a serious increase in a situation where the government does not have enough resources 61 .

6 262.62 Source: Policy Brief on demand for foodgrains during 2020.1 Rice Wheat Coarse grains Total Cereals Pulses Total food grain 236. 9 (in million tonnes) Projected demand during 2020 by NCAP 130 110 Crop Estimated Demand projected for production for Vision 2020 (by 2020 planning commission) 117.33 40. New Delhi 62 .6 19.64 34.92 119 92 15.2 42.8 278.Ramesh Chand.Table no. NCAP.5 246.62 Oilseed 85.6 226.61 280.99 43.08 105.

13 63 .13 32.05 2021 8.19 -8.94 -24.26 21.68 -39.21 21.99 -74.67 -26.97 -39.33 -2.Supply-Demand Gap for selected Food Item (million tones) Table no.31 -17.98 27.04 -16.31 Edible oil Sugar Source: Surabi (2011) -6. 10 Gap (Supply-Demand) Food items 2011 Rice Wheat Total cereals Pulses 1.66 -4.92 2026 9.

64 .Criticism of NFSA….

so fails to address the widespread problem of malnutrition No agriculture and productionrelated entitlements for farmers 65 . But the act provides 5kgs per person per month No place for pulses and oil in the entitlement.ICMR norms: adult requires 14kgs and children 7kgs of food grains per month.

66 .No entitlements to destitute. homeless and starving persons No entitlements to the third and onward born child.

67 . incremental step in the right direction with little resemblance to the legislation that had been shaped and drafted by the Right to Food Campaign. but not address the underlying problem of malnutrition to the extent that it could potentially have. It will mitigate hunger. in its present shape is only a small. The legislation will certainly deal with crucial aspects of access and availability of food for a large section of the population. but has left out the entire nutritional dimension of the right to food.• Patnaik (2013) opinioned that the NFSA.

technological and human resources. 68 . and extremely weak rural infrastructure to sustain farm development. This necessitates assessment and mobilization of financial.• Kalkoti (2012) suggested that the only way forward to address the issue of food for all is to pay attention to the much neglected supply-side. This calls for a combination of visionary and committed leadership with political will to address issues of our rain dependent farming system. Strengthening the farm production base and raising productivity by all possible ways and means. predominance of small unviable holdings and tenant farmers.

 Food and nutrition insecurity can be effective only with adequate attention to ensuring access to safe drinking water and hygiene and sanitation facilities.  The bill should have included subsidized rates for pulses which for many of the poorest are the only source of protein and other nutrients. The Food Bill should be linked to the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) which assures 100 days of unskilled work to people in the rural areas.  It could also be linked to education as is done in Bangladesh where school children and their families are given access to subsidized food.  Need to reduce the leakages from the distribution system and make it transparent 69 . In India we have the midday meal scheme for children to improve their attendance in schools.

motivate each district/block to achieve local self-sufficiency in food grain production.• Surender Kumar (2013) suggested that for the effective implementation of food security act various measures should be taken such as encouragement of Future market to avoid wide fluctuations in prices and prevent distress selling by small farmers. improvement communication system through ICT to help farmers to get a better deal for their produce. by ensuring above stated measurements. 70 . The Government should encourage the use of latest techniques. India can achieve food security in real sense and in a realistic time frame. Thus. Crop insurance schemes can be promoted to protect the farmers against Natural Calamities.

71 . Conclusion •To ensure success of Food Security in India we have to achieve the Food Production Targets and improve the efficiency of public distribution system.•India will not have problem of Cereals availability in the long run (2020-21) and will have shortage of Pulse and Oilseed production if adequate steps are not taken by the Government of India. Food Security Act 2013 will increase the Real Income of the targeted beneficiaries. •Given the inflationary tendencies in economy.

“There are people in the world so hungry. that God cannot appear to them except in the form of bread.” Mahatma Gandhi (1869-1948) 72 .

but it has to be passed by the State legislature or the parliament within six months & made as a proper Act. and then it becomes an Act.. sent for accent of the State Governor or the President of India... • An Act is a bill that was presented in a State legislative home/Parliament of India. 73 . • Whereas ordinance is a legal order or law made by the State Government or the Union Government when the Legislature or Parliament is not in session. this a temporary arrangement made by the said government with regard to such a law & its implementation in the State or the whole of the country as the case may be.• difference between ordinance an act. passed by both the houses of the State legislature or Parliament.. Such ordinance is legal & can be implemented for the time being..