Course Title : Economic Environment Of Business (EEB)

Course Code : DF - 206

Food Security in India

Submitted to

Prof. Dr. K. C. Padhy

By:

Name: - Pallab Kumar Sen

Roll No.: - 09DF036

Introduction

India is second largest country in the world in the manner of population. It is most important considerable plus point of the India, because it involve large human capital. Even we all Indian are thinking that, we will become super power in the world. But when we look at the basic problems of the Indian peoples, we know that- the Indian common man is facing lots of problems today. Recently most of Indian peoples are struggling with the bread and butter due to the continuously increasing prices of foodgrains, vegetables, pulses and other cereals. Food security implies access by all people at all times to sufficient quantities of food to lead an active and healthy life.” As noted by P.V. Srinivasan, this requires not just adequate supply of food at the aggregate level but also enough purchasing capacity with the individual/ household to demand adequate levels of food. As far as the question of ‘adequate supply’ is concerned, it involves two dimensions: 1. the quantitative dimension ( in the sense that the overall food availability in the economy should be sufficient to meet the demand), and 2. the qualitative dimension ( in the sense that the nutritional requirements of the population are properly looked after). As far as the question of ‘enough purchasing capacity’ is concerned, it involves the introduction of employment generation programmes so that the income and purchasing power of the people increases. To tackle the quantitative and qualitative aspects of the food security problem, the Government of India relied on the following three food-based safety nets: (1) Public Distribution System (PDS) (2) Integrated child Development Services (ICDS) and (3) Mid-day meals programme(MDM). As far as the issue of providing purchasing power to the people is concerned, various employment programmes have been introduced from time to time. Even amongst these, PDS has been the focus of most of the attention and debate over the years.

What is food security?

Food security means availability, accessibility and affordability of food to all people at all times. The poor households are more vulnerable to food insecurity whenever there is a problem of production or distribution of food crops. Food security depends on the Public Distribution System (PDS), Government vigilance and action at times when this security is threatened.

Food is as essential for living as air is for breathing. But food security means something more than getting two square meals. Food security has following dimensions (a) availability of food means food production within the country, food imports and the previous years stock stored in government granaries. (b) accessibility means food is within reach of every person. (c) affordability implies that an individual has enough money to buy sufficient, safe and nutritious food to meet one's dietary needs. Thus, food security is ensured in a country only if (1) enough food is available for all the persons (2) all persons have the capacity to buy food of acceptable quality and (3) there is no barrier on access to food.

Why food security?The poorest section of the society might be food insecure most of the

times while persons above the poverty line might also be food insecure when

the country faces a national disaster/calamity like earthquake, drought, flood, tsunami, widespread failure of crops causing famine, etc.

How is food security affected during a calamity? Due to a natural calamity, say drought, total production of foodgrains

decreases. It creates a shortage of food in the affected areas. Due to shortage of food, the prices go up. At the high prices, some people cannot afford to buy food. If such calamity happens in a very wide spread area or is stretched over a longer time period, it may cause a situation of starvation. A massive starvation might take a turn of famine.

A Famine is characterised by wide spread deaths due to starvation and epidemics caused by forced use of contaminated water or decaying food and loss of body resistance due to weakening from starvation. The most devastating famine that occurred in India was the FAMINE OF BENGAL in 1943. This famine killed thirty lakh people in the province of Bengal.

Who are food-insecure?Although a large section of people suffer from food and nutrition

insecurity in India, the worst affected groups are landless people with little or no land to depend upon, traditional artisans, providers of traditional services, petty self-employed workers and destitutes including beggars. In the urban areas, the food insecure families are those whose working members are generally employed in ill-paid occupations and casual labour market. These workers are largely engaged in seasonal activities and are paid very low wages that just ensure bare survival.

The social composition along with the inability to buy food also plays a role in food insecurity. The SCs, STs and some sections of the OBCs (lower castes among them) who have either poor land-base or very low land productivity are prone to food insecurity. The people affected by natural disasters, who have to migrate to other areas in search of work, are also among the most food insecure people. A high incidence of malnutrition prevails among women. This is a matter of serious concern as it puts even the unborn baby at the risk of malnutrition. A large proportion of pregnant and nursing mothers and children under the age of 5 years constitute an important segment of the food insecure population.

The food insecure people are disproportionately large in some regions of the country, such as economically backward states with high incidence of poverty, tribal and remote areas, regions more prone to natural disasters etc. In fact, the states of Uttar Pradesh (eastern and south-eastern parts), Bihar, Jharkhand, Orissa, West Bengal, Chattisgarh, parts of Madhya Pradesh and Maharasthra account for largest number of food insecure people in the country. Hunger is another aspect indicating food insecurity. Hunger is not just an expression of poverty, it brings about poverty. The attainment of food security therefore involves eliminating current hunger and reducing the risks of future hunger. Hunger has chronic and seasonal dimensions. Chronic hunger is a consequence of diets persistently inadequate in terms of quantity and/or 46 Economics quality. Poor people suffer from chronic hunger because

of their very low income and in turn inability to buy food even for survival. Seasonal hunger is related to cycles of food growing and harvesting. This is prevalent in rural areas because of the seasonal nature of agricultural activities and in urban areas because of the casual labour, e.g., there is less work for casual construction labour during the rainy season. This type of hunger exists when a person is unable to get work for the entire year.

What Is Expected In Food Security?

Food security happens when all people at all times have access to enough food that should affordable, safe and healthy, culturally acceptable , meets specific dietary needs, obtained in a dignified manner and produced in ways that are environmentally sound. The World Food Summit of 1996 defined food security as existing "when all people at all times have access to sufficient, safe, nutritious food to maintain a healthy and active life". Commonly, the concept of food security is defined as including both physical and economic access to food that meets people's dietary needs as well as their food preferences. But food security is a complex sustainable development issue, linked to health through malnutrition, but also to sustainable economic development, environment, and trade. There is a great deal of debate around food security. If we fail to maintain above there has been food insecurity. Food insecurity exists when all people, at all times, do not have physical and economic access to the sufficient, safe and nutritious food to meet their dietary needs and food preferences for an active and healthy life.

India is aiming at Self-sufficiency in Foodgrains since Independence.

After independence, Indian policy makers adopted all measures to achieve self-sufficiency in food grains. India adopted a new strategy in agriculture, which resulted in the ‘Green Revolution’ especially in the production of wheat and rice. Indira Gandhi, the then Prime Minister of India, officially recorded the impressive strides of the Green revolution in agriculture by releasing a special stamp entitled ‘Wheat Revolution’ in July 1968. The success of wheat was later replicated in rice. The increase in foodgrains was, however, disproportionate. The highest rate of growth was achieved in Punjab and Haryana, where foodgrains production jumped from 7.23 million tonnes in 1964–65 to reach an all-time high of 30.33 million tonnes in 1995–96. Production in Maharashtra, Madhya Pradesh, Bihar, Orissa and the northeastern states continued to stagger. Tamil Nadu and Andhra Pradesh, on the other hand, recorded significant increases in rice yield.

Food Security in India

National Food Security Act:

Available from 4 June, 2009 onwards by the Ministry of Consumer Affairs, Food and Public Distribution. Its objective is to Ensuring food security to the Below Poverty Line (BPL) people in urban & rural areas. Under the new

Act, the government would provide 251 lakh tons of food grains for BPL categories, with subsidy amounting to Rs.40,380 crore.

The scheme proposes to provide BPL families with 25kgs of grain per month at Rs. 3 per kg. The stocks of foodgrains (wheat and rice) in the central pool, as on June 1, 2009 were 204.03 lakh tons of rice and 331.22 lakh tons of wheat."The estimated annual requirement of foodgrains is about 446 lakh tons under TPDS and about 50 lakh tons under other welfare schemes," Pawar added.

Looking at the popularity of the National Rural Employment Guarantee Scheme (NREGS), which helped the Congress to win the 2009 Parliamentary elections, the newly constituted Government has thought of bringing the Food Security Act * President Pratibha Patil on June 4, 2009 said that a National Food Security Act would be formulated whereby each below poverty line (BPL) family would be entitled by law to get 25 kg of rice or wheat per month at Rs 3/- per kg, a promise made by the Congress before general elections 2009. Many would agree that the proposal for a Food Security Bill has come at the right point of time when the world has already witnessed food crisis in 2008 that pushed millions of people to the brink of poverty and under nutrition.

Key Features for the new act

Below Poverty Line (BPL) households: All BPL households shall be entitled to 35 kg of foodgrain each month, at Rs 3/kg for rice and Rs 2/kg for wheat under the Public Distribution System. Each nuclear family shall be treated as a separate household. A new methodology for the BPL Census is being proposed, based on simple, transparent and verifiable criteria. For instance, in rural areas any household that meets any two simple inclusion criteria (such as landlessness and being SC/ST) shall be entitled to a BPL Card. Households meeting any of six “exclusion criteria” will not be entitled to BPL cards. Extensive transparency safeguards will also be introduced in the Public Distribution System (PDS)

The proposed Act demands for continuation of existing food related schemes such as: Integrated Child Development Services, Mid-Day Meal Scheme, Public Distribution System, Antyodaya, National Maternity Benefit Scheme/ Janani Suraksha Yojana, National Social Assistance Programme, including Indira Gandhi National Old Age Pension Scheme, Indira Gandhi National Widow Pension Scheme and Indira Gandhi National Disability Pension Scheme, National Family Benefit Scheme, and Rajiv Gandhi National Crèche Scheme. All the provisions in various such schemes have been elaborately discussed in the proposed Act

The proposed Act has asked for severe penalties against individuals and organizations/ companies who are held responsible for violation of food safety norms and standards that affects the public. It has demanded for severe punishment to those who push for baby food instead of breast milk

The draft Right to Food Act has safeguards against encroachments by corporate lobbies and private contractors in food and nutrition related schemes

Apprehensions about the new National Food SecurityAct:

* If made into a law, the draft Food Security Bill would reduce the allocation for a below poverty line (BPL) household (e.g. in the case of Antodaya Anna Yojana) from 35 kg of rice/ wheat per month to 25 kg of rice/ wheat per month. This would appear contradictory to many who expected the Bill to be a benign effort of the UPA-II (2009-****) to ensure food security.

* Instead of better implementation of the already existing schemes such as the Targeted Public Distribution System (TPDS), Antodaya Anna Yojana (AAY), Integrated Child Development Scheme (ICDS), Mid Day Meal Scheme (MDMS) etc., the Food Security law might make things unduly worse and unnecessarily complicated. A cynical question here would be: Is the Food Security Bill going to replace all such food related schemes that existed before its enactment?

* If the Bill is about ensuring food security, how can it leave those who may not fall below the poverty line but are already exposed to food insecurity? The Rome Declaration (1996) made during the World Food Summit states that ‘food security is achieved when all people, at all times, have physical and economic access to sufficient, safe and nutritious food to meet their dietary needs and food preferences for an active life’. Food security is about nutrition security too. If that is the case, the Food Security Bill has to rethink about the quality of food grains supplied and distributed. The Food Security Bill must also aim at providing fortified food grains along with pulses, edible oils, salt and essential spices. A balanced diet would ensure both food and nutrition security. The basket of commodities, which would be available to the consumers, should reflect local tastes and preferences and must include locally grown cereals and legumes.

* If targeting of BPL households is done under the Food Security Bill, then that would lead to inclusion (including the non-poor) and exclusion (excluding the poor) errors. It would be wiser to go for universalization (rather than targeting) as was recommended by the Committee on Long Term Grain Policy under the chairmanship of Prof. Abhijit Sen (2000-02).

* Is India ready to rely exclusively upon biotechnology and genetic engineering for increasing its agricultural production so as to ensure food security for all? Much of debates have already taken place on the usefulness and pitfalls of GMOs.

* The World Development Report 2008-Agriculture for Development, which has been brought out by the World Bank mentions that India presently faces the problem of depleting ground water level that makes agriculture unsustainable and poses risk to environment. If rice is one of the food grains that is going to be supplied when the Food Security Act comes into being,

then more and more farmers would go for cultivation of rice by looking at the price incentives offered by the Government. In the Punjab region, overexploitation of groundwater takes place thanks to the huge subsidies given on electricity. Moreover, minimum support prices (MSP) for rice increase the financial attractiveness of rice relative to less water-intensive crops, which makes depletion of ground water table more obvious.

* There are apprehensions that sustainability of Food Security law would be at peril if India faces lower agricultural production due to poor harvest, drought etc. in the future. Is India ready to rely upon food imports and food aid to ensure right to food at all cost? At present, the country has been facing shortage in south-west monsoon rainfall that might affect agricultural production and prices of commodities.

Since the advent of the Green revolution in the early-’70s, the country has avoided famine even during adverse weather conditions. India has become self-sufficient in foodgrains during the last thirty years because of a variety of crops grown all over the country. The availability of foodgrains (even in adverse weather conditions or otherwise) at the country level has further been ensured with a carefully designed food security system by the government. This system has two components: (a) buffer stock and (b) public distribution system.

The nature of the problem

The Quantitative Aspect:Because of chronic food shortages that the country faced in the years

following Independence, the focus of food policy was to achieve self sufficiency. The period after the Third Plan has been marked by rapid strides in foodgrains production. This has enabled the economy to overcome the problems of foodgrains shortages and build up large stocks of foodgrains to counter any scarcity conditions. In fact, as noted by R. Radhakrishna, India achieved self-sufficiency in foodgrains in the 1970s and has sustained it since then. It improved its capacity to cope with year-to-year fluctuations in food production by building up large buffer stocks through the agency of FCI ( Food Corporation of India) and supplying these stocks to the people through the PDS. During some of the recent years, the buffer stocks considerably exceeded the minimum norms causing the problem of ‘excess stocks’. In July 2002, the actual stocks of foodgrains were as high as 63.0 million tons ( the highest level attained) while the buffer stock norm was 24.3 million tons. As a result, ‘excess stocks’ were as much as 38.7 million tons. However, stocks have subsequently declined. In fact, stocks of foodgrains stood at 17.4 million tons on January 1, 2007, lower than not only the stock of 18.8 million tons on January 1, 2006 but also the buffer stock norm of 20 million tones. The main reason for the decline in stocks was the lower stock of wheat. However, the stock of foodgrains rose to 19.2 million tons on January 1, 2008 which is the close to the buffer stock norm of 20 million tones and is considered by Economic Survey, 2007-08, as ‘adequate for meeting the requirement under TPDS and welfare schemes during the current financial year.

However, there are some issues of concern. Analysts point out that while population growth and shift in food habits away from coarse grains with the rise in incomes, will push up the consumption of wheat considerably in years to come ( to about 82 millions tons in 2009-10 and 90 million tons in 2014-15), the production is not likely to rise as neither area under wheat is likely to increase nor are any further increases in productivity in evidence ( in fact, wheat productivity after touching the level of 2,762 kgs per hectare in 2001-02 had tended to decline and was only 2,671 kgs per hectare in 2006-07). As far as rice is concerned, its production in recent years has been more than consumption except 2002-03. however, rice output has not grown strongly with yields stagnating at around 2,000 kgs per hectare since the late 1990s. even area under rice has tended to fall ( it was 45.2 million hectares in 1999-2000 and 43.6 million hectares in 2006-07). Accordingly, many observers believe that rice production is also beginning to plateau. As far as vegetable oils and pulses are concerned. India already imports their large quantities. For instance, vegetable oil imports were 49.85 per cent (i.e. half) of total consumption in 2004-05 while pulses imports were 8.83 per cent of total consumption in that year.

The qualitative aspect: Evben more worrisome is the qualtitative aspect of the problem as the following facts clearly bring out.

1. According to the Global Hunger Index, 2007, India ranks an abysmal 96 in a group of 119 developing countries. Only Bangladesh has worse levels of hunger than India in South Asia. Even Nepal is for notches higher than India at number 92 and Pakistan 8 points higher at number 88.

2. according to the World Food programme, nearly 50 per cent of the world hungry lives in India.

3. about 35 per cent of India’s population – over 350 million is food – insecure, consuming less than 80 per cent of the minimum energy requirement.

4. nearly 9 out of 10 pregnant women between 15 and 49 years are malnourished and anemic.

5. anemia in pregnant women causes 20 per cent of the infant mortality.6. 46 per cent of children under 5 were malnourished in 2006. the rate

has improved by just one per cent in a decade but still worse least developed countries were the figure is 35 per cent.

7. of the 9.7 million total deaths of children under five worldwide, 2.1 million deaths were in India in 2006. In other words India contributed 21.6 per cent of total deaths in the world below five – years group.

8. malnutrition accounts for 50 per cent of under five deaths. 9. of the 19 million infants with low birth weight in the developing world,

8.3 million come from India, were under weight prevalence rate is 43 per cent.

10.about one-third of under weight children under five live in India ( 54.6 million out of 156 million): Madhya Pradesh, Bihar, jharkhand, Gujrat, Orissa, Chattisgarh, meghalaya and Uttar Pradesh are worst offenders.

11.percentage of children suffering from anemia is 77. in other words, three out of four children in India are anaemic.

12.percentage of stunted children is 37. i.e., one out of three children has stunted growth.

13.percentage of children not fully immunized is 51.

Problems in PDS & Food Security for the poor

• Virtual exclusion of states like Bihar & Uttarpradesh from PDS network.• In states like Kerala & Andhra Pradesh PDS expenditure was higher but

the poor purchased less while the non-poor purchased more. The PDS scheme was regressive in this case.

• In other states the coverage was low. The monthly per capita purchase was 0.9kg in rural areas & 1.3kg in urban areas.

• The monthly purchase from PDS was uniformly lower across all states. It was no guarantee that the very poor are better served.

• Thus PDS remained an expensive and largely untargeted programme.

GOVERNMENT EXPENDITURE ON FOOD

Year Expenditure at current prices (Rs.

crores)

% of total Govt. expenditure

1980-81 650 2.9

1990-91 2,450 2.3

2000-01 12,120 3.6

2004-05 27,798 2.5

2005-06 23,077 1.3

2006-07 24,014 1.0

Supply Side Analysis of Food Insecurity in India

According to the data published by the government of India and the Food Corporation of India, total production of foodgrains was 230.78 million tonnes in 2007-08 and in recent year it is 229.85 million tonnes. There is just 0.93 million tonnes of foodgrains production decreased than last year. Hence question is that, only 0.93 million tonnes falling production of foodgrains can create such situations of food insecurity in India? When look at the statistics relating to the major foodgrains production. We found that, rice production is increased from 96.69 to 99.37 million tonnes in 2007-08 to 2008-09, wheat production is decreased from 78.57 to 77.63 million tonnes, production of

coarse cereals is just decreased from 40.76 to 38.67 million tonnes, cereals production is decreased from 216.02 to 215.67 million tonnes and production of pulses is near about stable it is changed from 14.76 to 14.18 million tonnes in same year.  

In the same year population growth is near about hardly 1.10 percent and net growth of population may be 0.50 to 0.75 percent. It is not larger growth which may become burden on food supply in India. Because, in the same period fish production is increased from 6.8 to 7.3 million tonnes, fruit production increased from 59563 thousand tonnes and production of vegetables is increased from 115011to 125887 thousand million tonnes. Apart from the production of foodgrains and supported foods buffer stock of foodgrains also increase continually since 2007.  In year 2006-07 buffer stock of wheat were 54.28 million tonnes and 119.77 million tonnes of rice stock. In year 2007-08 stock of wheat were 77.12 million tonnes and 114.75 million tonnes of rice and in year 2009 stock of wheat is increased to 182.12 million tonnes and stock of rice is increased to 175.76 million tonnes. There has been net growth in the major foodgrains production in India. So we conclude that, it is not economic problem it may be another type.

What is Buffer stock?

Buffer Stock is the stock of foodgrains, namely wheat and rice procured by the government through Food Corporation of India (FCI). The FCI purchases wheat and rice from the farmers in states where there is surplus production. The farmers are paid a pre-announced price for their crops. This price is called Minimum Support Price. The MSP is declared by the government every year before the sowing season to provide incentives to the farmers for raising the production of these crops. The purchased foodgrains are stored in granaries. Do you know why this buffer stock is created by the government? This is done to distribute foodgrains in the deficit areas and among the poorer strata of society at a price lower than the market price also known as Issue Price. This also helps resolve the problem of shortage of food during adverse weather conditions or during the periods of calamity.

What is the Public Distribution System?

Public Distribution System

The basic objective of the public distribution system in India is to provide essential consumer goods at cheap and subsidized prices to the consumer so as to insulate them from the impact of rising prices of these commodities and maintain the minimum nutritional status of our population.

It acts as a price support programme for the consumer during the periods of shortage of the 1960s. Thus, it acted as an instrument of price stabilization and became countervailing force against private traders who were interested to exploit the situation of scarcity to acquire more and more profits. The basic aim was to provide essential commodities such as rice, wheat, sugar, edible oil, soft coke and kerosene at subsidized prices.

It acquired the status of a welfare programme. An effort was made to extend subsidized foodgrains in 1985 in all the tribal blocks covering about 57 million persons. With a network of more than 4.62 lakh fair prices shops distributing commodities worth Rs. 30,000 crores annually to about 160 million families, the PDS in India was the largest distribution network of its kind in the world.

The food subsidy component of the Central Government is given in table 2. it may be noted that there has been a continuous increased in PDS expenditure, which rose from Rs. 650 crores in 1980-81 to Rs. 2,450 crorres in 1990-91. There was a big jump in expenditure during the period. As a proportion of Central Government expenditure , it was in the range of 2.9 to 3.2 per cent during 1980s and 1990s. Since 1997-98 PDS expenditure has been sooting up from Rs. 7,500 crores to Rs. 12,120 crorres in 2003-04. Food subsidies as percentage of total government expenditure went up sharply form 2.9 per cent in 1980-81 to 5.2 per cent in 2003-04.

Relative Share of Different Items in PDS SalesRice, wheat, sugar, edible oil, soft coke and kerosene are sold through

PDS outlets. Of these four items, viz, rice, wheat, sugar and kerosene account for 86 per cent of total PDS sales. Sugar alone accounts for 35 per cent, followed by rice (27%), wheat (10%) and kerosene (15%). Coarse cereals (bajra, jowar and other coarse grains), which are largely consumed by the poor accounts for less than one per cent of total PDS sales. The share of pulses, tha main source of protein for the poor, is less than 0.2 percent.

PDS impact on PovertyRadhakrishna report has also studied the decline in poverty as a result

of PDS subsidies. Taking India as a whole, the impact of all consumer subsidies on poverty was moderate; subsidies were estimated to have reduced poverty by 1.6 percentage points in rural areas and 1.7 percentage points in urban areas. About 12 million persons may have moved out of poverty in 1986-87 due to income transfers from PDS. As the absolute number of poor in India was put at 274 million in 1986-87, these numbers are small, rather insignificant.

The poor impact of the scheme in poor states also underlines the need for strengthening PDS in these states. As long as the development process is not able to reduce poverty continuance of the PDS in poor states stands justified. Rather, the need of the hour is to encourage proper targeting to achieve better results to pursue PDS.

State Intervention in Foodgrains and FCI

The main agency providing foodgrains to the PDS is the Food Corporation of India (FCI) set up in 1965. The primary duty of the corporation

is to undertake the purchase, storage, movement, transport, distribution and sale of foodgrains and other food stuffs. It ensures on the one hand that the farmers get remunerative prices for their produce ( not less than the support/ procurement prices fixed by the government), and on the other hand, the consumers get foodgrain from the central pool at uniform prices ( known as issue prices), fixed by government of India. The corporation has also been entrusted with the responsibility of maintaining buffer stocks of foodgrains on behalf of the government. With the increasing production of wheat and rice in recent years and the increasing demand on the PDS, the role of FCI has also increased as is the sole repository of foodgrains meant for the PDS. FCI has the following achievements to its credit: 1. ever since FCI started its procurement operations, the levels of procurement has increased considerably enabling the government to build up adequate buffer stocks on the one hand, and to meet the requirements of the PDS on the other hand: 2. With increase in domestic procurements of foodgrains by the FCI, dependence on imports of foodgrains has declined considerably, enabling the country to save valuable foreign exchange: 3. Since a major part of FCI’s procurements operations is in the nature of price support purchase, the FCI has arrested price declines to unremunerative levels: 4. By supplying foodgrains through the PDS at affordable prices, the FCI has helped in reducing the inflationary pressures on the one hand, and has enabled the low income group to meet their foodgrains requirements on the other hand: and 5. The FCI has played an important role in building up scientific storage capacity in the country. This has not only enabled the country to build up buffer stocks it has also helped in reducing losses on storage.

The food procured by the FCI is distributed through government regulated ration shops among the poorer section of the society. This is called the public distribution system (PDS). Ration shops are now present in most localities, villages, towns and cities. There are about 4.6 lakh ration shops all over the country. Ration shops also known as Fair Price Shops keep stock of foodgrains, sugar, kerosene oil for cooking. These items are sold to people at a price lower than the market price. Any family with a ration card can buy a stipulated amount of these items (e.g. 35 kg of grains, 5 litres of kerosene, 5 kgs of sugar etc.) every month from the nearby ration shop.There are three kinds of ration cards: (a) Antyodaya cards for the poorest of the poor; (b) BPL cards for those below poverty line; and (c) APL cards for all others.

The introduction of Rationing in India dates back to the 1940s against the backdrop of the Bengal famine. The rationing system was revived in the wake of an acute food shortage during the 1960s, prior to the Green Revolution. In the wake of the high incidence of poverty levels, as reported by the NSSO in the mid-1970s, three important food intervention programmes were introduced: Public Distribution System (PDS) for food grains (in existence earlier but strengthened thereafter); Integrated Child Development Services (ICDS) (introduced in 1975 on an experimental basis) and Food-for-Work** (FFW) (introduced in 1977–78). Over the years, several new programmes have been launched and some have been restructured with the growing experience of administering the programmes. At present, there are several Poverty Alleviation Programmes (PAPs), mostly in rural areas,

which have an explicit food component also. While some of the programmes such as PDS, mid-day meals etc. are exclusively food security programmes, most of the PAPs also enhance food security. Employment programmes greatly contribute to food security by increasing the income of the poor.

Current Status of Public Distribution System

Public Distribution System (PDS) is the most important step taken by the Government of India (GoI) towards ensuring food security. In the beginning the coverage of PDS was universal with no discrimination between the poor and non-poor. Over the years, the policy related to PDS has been revised to make it more efficient and targeted. In 1992, Revamped Public Distribution System (RPDS) was introduced in 1,700 blocks in the country. The target was to provide the benefits of PDS to remote and backward areas. From June 1997, in a renewed attempt, Targeted Public Distribution System (TPDS) was introduced to adopt the principle of targeting the ‘poor in all areas’. It was for the first time that a differential price policy was adopted for poor and non-poor. Further, in 2000, two special schemes were launched viz., Antyodaya Anna Yojana (AAY) and the Annapurna Scheme (APS) with special target groups of ‘poorest of the poor’ and ‘indigent senior citizens’, respectively. The functioning of these two schemes was linked with the existing network of the PDS.

The PDS has proved to be the most effective instrument of government policy over the years in stabilising prices and making food available to consumers at affordable prices. It has been instrumental in averting widespread hunger and famine by supplying food from surplus regions of the country to the deficit ones. In addition, the prices have been under revision in favour of poor households in general. The system, including the minimum support price and procurement has contributed to an increase in food grain production and provided income security to farmers in certain regions.

Programmes for Food Security in India: India has the largest food schemes in the World.

Entitlement Feeding Programmes

With a view to enhancing enrollment, retention and attendance and simultaneously improving nutritional levels among children, the National Programme of Nutritional Support to Primary Education (NP-NSPE) was launched as a Centrally Sponsored Scheme on 15th August 1995, initially in 2408 blocks in the country. By the year 1997-98 the NP-NSPE was introduced in all blocks of the country. It was further extended in 2002 to cover not only children in classes I-V of government, government aided and local body schools, but also children studying in EGS and AIE centres. Central Assistance

under the scheme consisted of free supply of food grains @ 100 grams per child per school day, and subsidy for transportation of food grains up to a maximum of Rs 50 per quintal.

In September 2004 the scheme was revised to provide cooked mid day meal with 300 calories and 8-12 grams of protein to all children studying in classes I-V in Government and aided schools and EGS/AIE centers. In addition to free supply of food grains, the revised scheme provided Central Assistance for (a) Cooking cost @ Re 1 per child per school day, (b) Transport subsidy was raised from the earlier maximum of Rs 50 per quintal to Rs. 100 per quintal for special category states, and Rs 75 per quintal for other states, (c) Management, monitoring and evaluation costs @ 2% of the cost of food grains, transport subsidy and cooking assistance, (d) Provision of mid day meal during summer vacation in drought affected areas. 12 crore (120 million) children are so far covered under the Mid-day Meal Scheme, which is the largest school lunch programme in the world. Allocation for this programme has been enhanced from Rs 3010 crore to Rs 4813 crore (Rs 48 billion1.2 billion) in 2006-2007.

National Food for Work Programme:

National Food for Work Programme was launched on November 14, 2004 in 150 most backward districts of the country with the objective of intensifying the generation of supplementary wage employment. The programme is open to all rural poor who are in need of wage employment and desire to do manual unskilled work. It is implemented as a 100 per cent centrally sponsored scheme and the foodgrains are provided to States free of cost. The Collector is the nodal officer at the district level and has the overall responsibility of planning, implementation, coordination, monitoring and supervision. For 2004–05, Rs 2,020 crore have been allocated for the programme in addition to 20 lakh tonnes of foodgrains.

Food Subsidy Programmes

Antyodaya Anna Yojana (AAY): AAY was launched in December 2000. Under the scheme one crore of the poorest among the BPL families covered under the targeted public distribution system were identified. Poor families were identified by the respective state rural development departments through a Below Poverty Line (BPL) survey. Twenty five kilograms of foodgrains were made available to each eligible family at a highly subsidised+ rate of Rs 2 per kg for wheat and Rs 3 per kg for rice. This quantity has been enhanced from 25 to 35 kgs with effect from April 2002. The scheme has been further expanded twice by additional 50 lakh BPL families in June 2003 and in August 2004. With this increase, 2 crore families have been covered under the AAY.

Annapurna (10 kgs of free food grain for destitute poor): The Annapurna scheme aims at providing food security to meet the requirement of those Senior Citizens who through eligible have remained uncovered under the National Old Age Pension Scheme (NOAPS). Under the Annapurna Scheme, 10 Kg. of food grains per month are to be provided 'free of cost' to the Beneficiary. The number of persons to be benefited from the Scheme will, in the first instance, be 20% of the persons eligible to receive pension under NOAPS in States/Union Territories.

Integrated Child Development Services (ICDS) ICDS launched in 1975 is a centrally sponsored scheme implemented

by the ministry of Human Resource Development. The central government is responsible for programme planning and operating costs while state governments are responsible for programme implementation and providing supplementary nutrition out of their own resources. It is one of the child intervention programme in the world with a holistic package of six basic services for children up to six years of age, and for pregnant and nursing mothers. These services are:

1. Supplementary feeding (ICDS provides to a child food ration for 300 days, containing 300 calories and 12.5 grams protein and to pregnant and lactating women food ration containing 500 calories and 12-15 grams protein)

2. Immunisation 3. Health Check-ups4. Referral services5. Health and nutrition, education to adult women, and 6. Non-formal pre school education to 3-6 years old.

The programme is implemented through a chain of projects, each of which is located at a community block covering around one lac population in rural and urban areas and 35,000 population in tribal areas. The ICDS project located at community block targets to provide food supplement to 40% of 17,000 children aged under six years and 40% of the pregnant and lactating women. ICDS is being implemented through one platform, i.e., Anganwari centre or child Care centres. The staff includes CDPO (Chief Development Project Officer), Supervisors, Anganwari workers and helpers.Funds for ICDS:- the expenditure for running ICDS is currently made for three broad sources:

1. Funds provided by the Central Government under general ICDS, used to meet expenses on account of infrastructure, salaries of ICDS staff, training, basic medical equipment, pre-school learning kit etc.

2. Funds allocated by state government under their respective budgets to provide supplementary nutrition.

3. Funds provided under the Pradhan mantri Gramodaya Yojana (PMGY) as additional central assistance, technically to be used to provide monthly take home rations (THR). To children from 0-3 years age group living below the poverty line and need of additional supplementation.

Expansion of ICDS: - Starting with a modest 33 blocks/ projects, ICDS has gradually expended to 6,118 projects of which 5,659 projects with 7, 48,229

Anganwari centres were operational by March 31, 2006. The coverage of ICDS as expended steadily over the years in March 1992 it had 1.7 crore beneficiaries. This number rose to 2.8 crore in June 1999. At the end of December 2007, 5,959 ICDS projects and 9,32,000 Anganwadis and mini Anganwari centres were functional. The beneficiaries count increased to 6.29 crore children and 1.32 crore pregnant mothers.

Mid-day meals scheme - MDMS (All Primary School children)

The national programme of nutritional support to primary education, commonly known as the Mid-day Meal (MDM) scheme launched in 1995, is a nation wide central scheme intended to improve the enrollment and regular attendance and reduce dropout in schools. It is also intended to improve the nutritional status of the primary school children. MDM is the largest school nutritional programme in the world and is meant to provide at least 450 calories and 12 grams of protein to 12 crore children in over 9.5 lac primary schools (government, government aided and local body schools). The scheme is being implemented in all states and union territories. In order to improve the quality of meal, the scheme was last revised in June,2006. The cooking cost norm has been fixed at Rs. 2 per child per school day. Recognizing the need for appropriate infrastructure, assistance for construction of 94,500 kitchen cum stores was sanctioned for the first time to states in 2006-07 (budget estimates). Similarly, assistance to states has been provided at the rate of 5,000 per school to procure/ repair kitchen devices. The allocation for MDM scheme was Rs. 5,348 crore in 2006-07. This allocation was raised to Rs. 7,324 crore in the union budget for 2007-08.

The performance of mid-day meal scheme has varied across states. In Uttar Pradesh, because of powerful food mafias and corrupt officials, there has been very poor implementation. However, in Tamilnadu it has proved to be quite a successful stuff introduced way-back in 1982, the scheme-called free noon meal scheme (FNMS) – currently covers 17.26 lac children between the ages of 6 months and 5 year. Currently, the scheme is being implemented in 41,344 schools covering 58.76 lac children up to the tenth grade. The FNMS has helped improve the nutritional status of children considerably; from 41.40 in 1992-93 to 61.45 in 2005-06, and serve malnutrition has been reduced from 0.45% in 1999 to 0.07% in March, 2006. The infant mortality rate has also dropped from 53 per thousand live births in 1998 to 42 in 2003. Under the directions of the Supreme Court, private sector has also been involved in the scheme in various states. Thousands of women in Gram Panchayat are cooking and serving hot food to children in their villages in these states. This has not only helped to feed children with quality meals cooked and served piping hot during their lunch their lunch break but has also let to women empowerment.

Critical Appraisal of ICDS and Mid-day Meal Scheme: Three National Family Health Surveys have been carried out between 1992-2006.NFHS-II(1998-1999) and NFHS-III(2005-2006).

1. The overall impact of Integrated Child Development Services (ICDS) on malnutrition was remained very limited due to a meager allocation of resources to this programme and faulty project design.

2. The programme is unequally distributed between the states. It does not cover the states like Bihar, U.P., and M.P. which are having high degree of malnutrition properly.

3. Though the programme is meant to be a package of ‘integrated services’ including nutrition services, nutrition counseling, micronutrient supplementation and antenatal care for pregnant women its focus is intended to focus to supplementary nutrition programme(SNP). Further, the main focus of SNP has been on children in the age group of 3-6yrs. Younger children have been comparatively neglected if not excluded.

National Food Security MissionThe growth in food grains production has stagnated during recent past

while the consumption need of the growing population is increasing. To meet the growing foodgrains demand, National Development council in its 53 rd

meeting adopted a resolution to enhance the production of rice, wheat and pulses by 10, 8 and 2 million tons respectively by 2011. The proposed centrally sponsored scheme ‘National Food Security Mission (NFSM) is to operationalise the resolution of NDC and enhance the production of rice, wheat and pulses.

Key features1. The scheme to be implemented in a mission mode through a farmer

centric approach.2. All the stakeholders to be actively associated at the District levels for

achieving the set goal.3. The Scheme aims to target the select districts by making available the

improved technologies to the farmers through a series of planned interventions.

4. A close monitoring mechanism proposed to ensure that interventions reach the targeted beneficiaries.

Objectives1. Increasing production of rice, wheat and pulses through area

expansion and productivity enhancement in suitable manner.2. Restoring soil fertility and productivity at individual farm level.3. Enhancing farm level economy (farm profits) to restore confidence of

farmers of targeted districts.

Strategy1. Expansion of area of pulses and wheat, no expansion of area in rice.

Bridging the yield gap between the potential and the present level of productivity through –

Acceleration of seed production. Integrated Nutrient Management and Integrated Pest Management. Promotion of new production technologies like hybrid rice, timely

planting of wheat and promotion of new improved variety of pulses. Supply of input ensuring their timely availability.

Components of NFSMRice

Demonstration of improved technology including hybrid and system of rice intensification (SRI).

Promotion of mechanical weeders and others farm implements. Extension, training and mass media campaign. Awards for the best performing district in each state.

Wheat Providing subsidy on diesel pump sets and community generators for

irrigation. Promotion of micronutrient use in deficient areas. Assistance for innovative interventions at local level

Pulses Increasing for innovative replacement rate to 25%

Flow of Fund Fund for the mission programmes to be directly released to the State

NFSM agency after approval by the National Executive Committee. State Mission agency would ensure implementation of the

programmes, in a time bound manner and would make available funds to the district level implementing agency in accordance with their approved programmes.

Funds would be released in installments based on progress reports.

Monitoring

The NFSM will be monitored by national, state and district executive committee.

The project management team would be constituted at district, state and national level to assist in the monitoring and implementation of the programme.

Mission director at national and state level will be assisted by project management team in implementation and monitoring.

A paradigmNFSM - RICE

Districts covering more than 50,000 hectare area under rice. The productivity is less than the state average productivity.

NFSM – WHEAT Districts with sizeable area under wheat. Districts having irrigation to a great extent. The productivity is less than national/ state average.

NFSM – PULSES The districts selected based on potential for area expansion through

inter-cropping/ follow land.

District level Action plan

The annual action plan to be prepared by district food security mission executive committee headed by collector.

A baseline survey to be conducted by district agency to record current levels of production.

The annual action plans for the districts to be based on potential and available technology.

State level action plan to be prepared based on district level action plan.

For selection of beneficiaries Pnachayat Raj institutions to be associated a village level.

Area of Operation

NFSM- RICE – Total States – 12 Andhra Pradesh, Assam, Bihar, Chattisgarh, Jharkhand, Karnataka,

Madhya Pradesh, Maharashtra, Orissa, Tamilnadu, Uttar Pradesh and west Bengal.

Total identified districts – 133.

NFSM – Wheat: Total States: 9 Bihar, Gujarat, Haryana, Madhya Pradesh, Maharashta, Punjab,

Rajasthan, Uttar Pradesh and West Bengal. Total identified districts: 138

NFSM – Pulses:Total States:14 Andhra Pradesh, Bihar, Chattisgarh, Gujarat, Haryana, Karnataka,

Madhya Pradesh, Maharashtra, Orissa, Punjab, Rajasthan, Tamilnadu, Uttar Pradesh and West Bengal

Total identified districts:168

Total States under NFSM: 16Total identified districts under NFSM: 305

Flaws in food Security SystemThe PDS in India has been criticized on various counts. The main criticism is as follow;

1. Limited benefit to poor from PDS: - Many empirical studies have shown that the rural poor have not benefited much from the PDS as their dependence on the open market has been much higher than on the PDS for most of the commodities. In study published in 2002, R. Radhakrishna, made the following important observations as far as access of the poor to PDS is concerned:

Many empirical studies have shown severe biases in the inter-regional distributions of the PDS supplies – states with high incidence of poverty such as Bihar, Orissa and Madhya Pradesh received a lower share.

The PDS is not functioning at all in the states with high concentration of the poor, due to lack of the desire initiatives on the part of the state governments. The prospects of these states in providing safety nets to the poor on the basis of spending from their own resources would seem to be bleak since they are

facing a severe fiscal crunch. Even the TPDS ( Targeted Public Distribution System) introduced in 1997, has not made a significant impact on the access of food since delivery systems in the poorer states are weak.

2. Regional disparities in PDS benefits: - there are considerable regional disparities in the distribution of PDS benefits. For example, in 1995, the four southern states of Andhra Pradesh, Karnataka, Karla and Tamilnadu accounted for almost one half (48.7%) of total PDS off take of foodgrains in the country while their share in all India population below the poverty line in 1993-94 was just 18.4%. as against these, the four northern of Bihar, Madhya Pradesh, Rajasthan and Uttar Pradesh ( or BIMARU states) having as much as 47.6 % of all India population below the poverty line in 1993-94 accounted for just 10.4% of all India off take of foodgrains from PDS in 1995.

3. The question of urban bias: - Number of economists have pointed out that PDS remained limited mostly to urban areas for a considerable period of planning where the coverage of rural areas was very insufficient.

4. The burden of food subsidy: - PDS is highly subsidized in India and this has put a severe fiscal burden on the government. Subsidy on PDS arises from the differences between the issue price and the economic cost of the FCI. From Rs. 662 crores in 180-81, food subsidy rose to Rs. 2850 crores in 1991-92 and further to Rs. 23,828 crore in 2006-07.

5. Inefficiencies in the operation of FCI:- the economic cost of FCI foodgrains operations have been rising on the account of increase in procurements prices and other costs ( which include procurement incidentals, distribution cost and carrying cost).

6. PDS results in price increases: - some economists have pointed out that the operations of the PDS have, in fact, resulted in all round price increase. This is due to the reason that large procurements of fodgrains every year by the government actually reduces the net quantity available in the open market.

7. Leakages from PDS: - Another criticism of PDS relates to the problem of leakages from the system in the form of losses in the transport and storage and diversion to open market. The major part of the leakage is due to diversion of foodgrains to the open market because of the widespread prevalence of corrupt practices.

Targeted Public Distribution System(TPDS)

Reasons for implementing Targeted Public Distribution System(TPDS):

• Functioning of PDS was severely critisised for its failure to serve people under BPL.

• For its bias in favour of urban areas. • Negligible coverage in poor states with larger poor population.

• Lastly because of wide leakage of PDS food grains procured from FCI to open market and supply of inferior grains in ration shops (FPS).

What is Targeted Public Distribution System(TPDS)?

Under TPDS special cards are issued to BPL families to sell them foodgrains at specially subsidized prices with effect from June 1997. The main aim was to direct the subsidy to BPL families. It was expected that 65 million BPL family would get the benefit. Under TPDS each poor family is entitled to 10kgs/month of foodgrains at highly subsidized prices. In April 2000, it was increased to 20kgs/month at 50% of the economic cost. Again in July 2001, it increased to 25kgs/month. Under Antodaya Anna Yojna poorest of the poor families got rice Rs.2/kg & wheat Rs.3/kg.

Share of different items in PDS sales:

Commodity % share (Rural + Urban)

Rice 26.7

Wheat 10.1

Minor cereals 0.8

Pulses 0.2

Total Food grains 37.8

Edible oils 8.6

Sugar 35.0

Kerosene 14.6

Others 4.0

Total 100

Trade Practice Analysis of Foodgrain Market:

Supply side analysis of the food market shows that, there is not greater change in foodgrain production in India. But recently all Indians are facing a problem of low availability of foodgrain in the market and its higher prices. It is questionable, because generally trend of rising price can be found whether production of particular goods is decreased. But unfortunately production of foodgrain is near about stable while prices are rising rapidly in India. It is happen in the retail market due to the speculative practice of the traders. According to the supply department of the government of Indian and the government of Maharashtra most of traders are kipping illegal stock of foodgrain and pulses. They are doing such for only profit motive and ignore the morality. Hence, we can say that it is not only natural problem but also

manmade. In another word we can say that "Hunger created by nature but supported by traders"

How Can Tackle It?

It may be possible to make food security in India in good manner. If we doing the proper planning of foodgrain production and fair practices in food market. There is need of strong control over the food market in India. In developing countries like India, the root causes of food insecurity include, poverty, corruption, national policies that do not promote equal access to food for all, environmental degradation, barriers to trade, insufficient agricultural development, population growth, low levels of education, social and gender inequality, poor health status, cultural insensitivity, and natural disasters. If the government concentrate the problem specific it is possible by the existing majors, but there is need of implementation of that in proper manner and accurately. Public distribution system is very good way to overcome the problem of speculation by the private traders.

Another way to food security is increase in fruit, milk and fish production, Fish is not only a vital food it is also a source of livelihood for millions of people around the globe. We can solve that problem by the increase in inland and sea fish production in India. The policy of mitigating nutritional deficiencies and food security by fisheries is a pragmatic move in India, considering the fact that sea has ample scope for continuous supply of protein rich food. We need to exploit the food from sea to counter the menace of malnutrition. India, with its vast coastline and seas can use science and technology to make full use of fisheries in ensuring food security to its vast populace.

The objectives of the Public Distribution System-PDS are good but it was failed to accomplish that objective due to the corruption. PDS is better way to tackle the problem of food speculation of private traders. If the government will succeed the in the motive of PDS the intensity of food insecurity problem will be reduced in future. However, the cruel reality is that despite this huge food production, a huge buffer stock and an extensive network of PDS, millions of people are food insecure and many even die of starvation. Food Insecurity and tragedy hit different parts of the country every year.

The present food crisis is due to lack of proper distribution and the trading system impeding free flow of food. Even increase in agricultural productivity also one of the solution for this problem. This should be based on integrating inputs and outputs-the supply of high yielding varieties of seeds, fertilizers, and irrigation, supported by credit alongside remunerative output prices. A second "green revolution" is essential to stimulate food production in many India. . It is crucial to ensure that farm and trade policies of developed countries do not artificially reduce the prices of their foodgrains. This makes it virtually impossible for farmers from developing countries to compete both in their own domestic markets, due to cheap food imports, and also in the international market. 

The problem of food security comes mainly from the slow growth of purchasing power of the people in the rain-fed eco-systems. Efforts must be made to help them by developing drought resistant seeds, cost-effective dry-

land farming techniques. A major challenge to food security comes from dietary diversification of the poor. If cereal pricing is left to the market forces, government playing the facilitating role, land will be released from rice and wheat cultivation to meet the growing demand for non-cereal crops such as oilseeds, fruits and vegetables in accordance with diet diversification. At the movement the problem is the problem of distribution of existing comfortable level of supply. However with increasing population combined with low agricultural productivity. Therefore we should do efforts to increase productivity and re-correct the distribution problems.

Conclusion

Although, we can say that food security problem in India is not serious if we success in the proper distribution policy. But problem is that, the government has failed to control and regulate food market in India. This problem becomes serious due to the unfair trade practice by private traders doing in drought situation.  The problem of hunger is due to poor economic accessibility. It is result of poor implementation of policy measures. In developing countries like India having a huge population, scarcity of food is a major socio-economic problem. In such situation rich become richer and poor become poorer. Thus, percentage of poor people below poverty line increases who are suffering from malnutrition. Thus, food security plays a vital role. So that at least all people can access to basic food requirements.

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