national food security bill 2013: opportunity and challenges

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Page 1: National food security bill 2013: opportunity and challenges
Page 2: National food security bill 2013: opportunity and challenges

≥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

Page 3: National food security bill 2013: opportunity and challenges
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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)

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Page 6: National food security bill 2013: opportunity and challenges

National food security bill 2013: opportunity and challenges

Presentd by : Gulshan Kumar SharmaRoll No: 10281

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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

Page 10: National food security bill 2013: opportunity and challenges

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”

Page 11: National food security bill 2013: opportunity and challenges

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.

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Present scenario of PDS

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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.

Page 20: National food security bill 2013: opportunity and challenges

NEED FOR NFSB

Page 21: National food security bill 2013: opportunity and challenges

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.

Page 22: National food security bill 2013: opportunity and challenges

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

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Contd…

Maximum under nutrition in the five Indian states (UNICEF)

Uttar Pradesh

Madhya Pradesh

Bihar

Rajasthan

Orissa

Page 24: National food security bill 2013: opportunity and challenges
Page 25: National food security bill 2013: opportunity and challenges

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

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7 Apr 2023 26

7% of them dying before they reach fifth birthday

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Consequences of food security bill

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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

Page 29: National food security bill 2013: opportunity and challenges

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.

Page 30: National food security bill 2013: opportunity and challenges

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

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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.

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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.

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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…

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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

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0

20,000

40,000

60,000

80,000

100,000

120,000

140,000

Cost of Food SubsidyCost...

Year

Amount (Rs. crores)

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Sources: Food corporation of India, commission for agricultural cost and prices, GOI

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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

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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.

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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.

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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.

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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.

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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.

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•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 ?

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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.

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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

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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.

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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

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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 .

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“There are people in the world so hungry, that God cannot appear to them except in the form of bread.”

Mahatma Gandhi (1869-1948)