national food security bill 2013: opportunity and challenges
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≥30.0, extremely alarming
20-29.9, alarming
10.0-19.9, serious
1.5-9.9, low to moderate hunger
No data Excluded from GHI
GLOBAL HUNGER INDEX 2012
29% of the 872.9 million undernourished people (FAO,2009)
49% of the world’s underweight children (WHO 2009)
34% of the world’s stunted children (WHO 2009)
39 per cent of rural women in the 15 – 49 age group, suffer from
chronic energy deficiency National Family Health Survey (NFHS-3)
National food security bill 2013: opportunity and challenges
Presentd by : Gulshan Kumar SharmaRoll No: 10281
Food Insecure Groups
Worst affected group Landless people
Traditional artisans
Homeless, beggars
Family employed in ill-paid occupation
Casual labourers( seasonal activity+ low wages)
Migrants( natural disaster)
Women's and children
The National Food Security Ordinance, 2013 was promulgated by the
President of India on July 5th 2013.
On 10th September, 2013, it became The National Food Security Act,
2013 (No. 20 OF 2013)
FAO (2002) Food security is a situation that exists when all people, at all
times, have physical, social and economic access to sufficient, safe and
nutritious food that meets their dietary needs and food preferences for an
active and healthy life”
PREAMBLE
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.
Present scenario of PDS
Source:-A leaky Bucket, Times of India, May 20,2011, http://articles.timesofindia.indiatimes.com/2011-05-20/edit-page/29560838_1_welfare-schemes-centrally-sponsored-uid
How Far PDS is Benefiting Poor?
Recent World Bank report says that PDS which accounts for 1% of GDP benefits only 40% of targeted beneficiaries.
NEED FOR NFSB
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.
Year Rank in Hunger index
Out of total no. of countries
Score Status
1990 31.73 Alarming
2007 94 118 25.03. Alarming
2008 66 88 23.70 Alarming
2009 65 88 23.90 Alarming
2010 67 84 24.10 Alarming
2011 67 81 24.2 Alarming
2012 65 79 22.9 Alarming
Source:-Global Hunger Report, IFPRI
Performance on Global Hunger Index
Contd…
Maximum under nutrition in the five Indian states (UNICEF)
Uttar Pradesh
Madhya Pradesh
Bihar
Rajasthan
Orissa
Stark Realties• India ranked 10th largest Economy of world on nominal GDP basis and 3rd largest
on economy on PPP basis But India has…………..
• 29% of the 872.9 million undernourished people (FAO 2009) • 49% of the world’s underweight children (WHO 2009)• 34% of the world’s stunted children (WHO 2009)• India is ranked 67 way below neighboring countries
like China, Nepal & Pakistan (2011 Global Hunger Index IFPRI)
• According to the latest data on child under nutrition from 2005–10, India ranked second to last on child underweight out of 129 countries— below Ethiopia, Niger, Nepal, and Bangladesh. Only Timor-Leste had a higher rate of underweight children
7 Apr 2023 26
7% of them dying before they reach fifth birthday
Consequences of food security bill
Positive impact Right to food become a legal right- 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.
Subsidized food to pregnant women and children
under the age of 16.
Food at very cheap rates of between one and
three rupees per kilogram to up to 70% of the
population.
Reduction in malnutrition
Increase purchasing power of poor people as they
can spend money on other basic needs
Continuance of Antyodaya Anna
Yojana (AAY) – Protection to 2.43
crore poorest of poor families under
the Antodaya Anna Yojana (AAY) to
supply of 35 kg foodgrains per month
per family would continue.
Bill seeks to utilize already existing
infrastructures like PDS and
aganwadi’s. This has prevented
further wastage of money to develop
the infrastructures.
FOOD SECURITY ALLOWACES
In case of non-supply of the entitled
quantities of foodgrains such persons shall be
entitled to receive such food security
allowance from State Government.
SPECIAL FOCUS ON NUTRITIONAL
SUPPORT TO WOMEN AND
CHILDREN
This scheme will be benefiting all pregnant
women and lactating mothers with increased
amount of Rs. 6000/-
Children in the age group of 6 months to 14
years will be entitled to take home ration or
hot cooked food as per prescribed nutritional
norms
Negative consequences Credibility of PDS system-
The government intends to use the Public Distribution System for delivering
subsidies to the poor.
The PDS is already used to deliver food subsidies to the poor but around 60% of
the food delivered that way is currently lost to leakages.
It is sold on the open market for a higher price.
Cost of transferring 1 rupee is 5.37 rupee.
Effect on farmers and producers-
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.
Some farmers who don’t need subsidized grain because they grow it.
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,
which is likely to lead to an over-supply of grain and a collapse in prices.
Inadequte food production In bad
agricultural years, the country may have to
import food. Since India is not normally an
importer, even a small order of 5-10 million
tonnes will rock the international markets. As
international prices are far above domestic
prices, the subsidy bill will bloat even more.
http://www.firstpost.com/politics/food-security-bill-is-upa-2s-nrega-cos
tlier-and-riskier-84154.html?utm_source=ref_article
Failure to define the beneficiaries -Bill says
that States will provide the list of the poor but
they have no such records.
Contd…
Contd…
Based on schemes which are itself in trial stages- Aadhar scheme and direct cash
transfer both are in their trial stages. So burdening an still developing programme
will lead to total failure.
Widen the already swollen budget deficit next year, increasing the risk to economy.
The government has already budgeted 900 billion rupees for the scheme in the
current fiscal year ending March 2014 and in year in 2014/15 it will need to come
up with as much as 1.3 trillion rupees, adding to a total subsidy burden that already
eats up about 2.4 percent of gross domestic product
0
20,000
40,000
60,000
80,000
100,000
120,000
140,000
Cost of Food SubsidyCost...
Year
Amount (Rs. crores)
Sources: Food corporation of India, commission for agricultural cost and prices, GOI
Crop Projected demand during 2020 by NCAP
Estimated production for 2020
Demand projected for Vision 2020 (by planning commission)
Rice 130 117.08 119
Wheat 110 105.64 92
Coarse grains 34.92 15.6
Total Cereals 236.99 262.2 226.6
Pulses 43.61 42.8 19.5
Total food grain 280.6 278.62 246.1
Oilseed 85.33 40.62
Projected Scenario of 2020 (in million tonnes)
Source: Policy Brief on demand for foodgrains during 2020,Ramesh Chand, NCAP, New Delhi
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, 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.
Given the rising costs of the scheme and rising population, its sustainability is under
question. This is a mega program and will require a huge food subsidy. The cost of it
will go up from 0.8% of Gross Domestic Product to around 1.1% of GDP. This is a
serious increase in a situation where the government does not have enough resources .
India’s population is likely to reach 1.5 billion by 2030, the challenge facing the country
is to produce more and more from diminishing per capita arable and irrigation.
Contd..
Not enough resources- To implement this scheme, the total estimated
annual food grains requirements will be 61.23 million tones and is likely to
cost Rs.1,24,724 crore.
Govt. Measures for Food Security
•National Food Security Mission•Rashtriya Krishi Vikas Yojana•Mid Day Meal •ICDS (integrated Child Development Scheme)•National Food Security Act 2013.
2007-08 2008-09 2009-10 2010-11 2011-12
Growth in GDP for Agriculture and allied Sectors (%), base year
2004-05
5.8 0.1 0.8 7.9 3.6
Growth in GDP for Agriculture and allied Sectors
Source:-Economic Survey,2013
Rashtriya Krishi Vikas Yojana
•Started in 2007-08 for incentivizing states to enhance public investment to achieve 4% growth rate in agriculture and allied sectors during the 11th five year plan. During 2007-11 an amount of Rs.14598 crore was released.
Mid Day Meal Scheme100 million school children are eligible for hot meal; 50 million are getting the meals; of which 27 million also get the “4-in-one health package.”
The scheme does not provide meals to those who does not attend the school.
•As per the Food Security Act 2013, Section 2, sub section 7 the term “Food Security “ means ‘the supply of the entitled quantity of foodgrains and meal specified under Chapter II’.
•According to Section 2, Sub section 8 “Food Security Allowance ” means ‘the amount of money paid by the concerned State Government to the entitled persons under section 13’.
•Thus the Act implies that we should not look for overall cover of a daily man’s requirement for food but it is an attempt by the Govt. to support the food security of households.
Source: Food Security Act 2013
Is this Food Security or Cereal Security ?
State food security Chhattisgarh
In December 2012, Chhattisgarh became the first state to have its own food security Act
Gujarat
Gujarat too covers almost twice as many BPL families as the Centre recognizes — 24.3 lakh against 13.1
lakh. The government diverts part of the APL supplies to BPL families
Bihar
1.12 crore BPL families (of estimated 1.37 crore) while the Center recognizes only 65.23 lakhs. It has
created a fund of Rs 580 crore, of which the state spends Rs 120 crore every year on grains distributed to
the "unrecognized" BPL families
Rajasthan
Rajasthan's latest budget provides for wheat at Re 1 per kg for all BPL and Antyodaya families, costing the
state Rs 500 crore a year. This is besides sugar at Rs 10. APL families get atta at Rs 5
Various other subsidies, costing the state Rs 350 crore.
Comparison between Chhattisgarh food security & NFSB
Chhattisgarh food security 2012
National food security bill 2013
Food grain entitlementsAntyodaya and prority (per households)General
35 kg food grain at Rs 1 & 2/Kg
2 kg iodized salt2 kg black gram at Rs 5/kg(tribal)2 kg pulses at Rs 10/ kg(tribal)15 kg food grain at RS 15/kg
5 kg per person per month
35 kg food grain per householdNo provision of noon food grain item
Type of entitelments
Only on household basis Antyodaya only on household basisAll others on per person basis
Antyodaya Include vulnerable group Only poorest of poorDestitutes and homeless
Free meal No provision
PDS reform Use IT and SMS services Deliver to doorstep of PDS. No IT services yet announced
Some practical suggestions to improve the Food Security Situation
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. In India we have the midday
meal scheme for children to improve their attendance in schools.
The bill should have included subsidized rates for pulses which for many of the
poorest are the only source of protein and other nutrients.
Contd…
Food and nutrition insecurity can be effective only with adequate attention to
ensuring access to safe drinking water and hygiene and sanitation facilities.
Of India’s 638,000 villages, over 550,000 villages produce food crops; the rest
focus on cash crops. Most of these villages have something to sell in the market,
indicating surplus food grains. Yet, in the same village there are hungry people.
Why can’t the food security system use the local surplus stock to distribute among
the local hungry and poor?
Need to reduce the leakages from the distribution system and make it transparent
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.
Provide food security to 75% people in rural and 50% in urban area at minimal cost
Improve food availability to rural and needy people in country.
Improve purchasing power
Reduce malnutrition in children's
Special provision for pregnant women and children's which ultimately improve their lifestyle.
It also enhance food subsidy nearly about Rs.1,24,724 crore in initial year
Increase corruption
Government should strengthen already existing programme such as RKVY, mid day meal, MNAREGA
Learn from Chhattisgarh food security system
In future it may happen that country have to import huge quantity of food grain .
…
“There are people in the world so hungry, that God cannot appear to them except in the form of bread.”
Mahatma Gandhi (1869-1948)