WELCOME TO PRESENTATION ON

FOOD SECURITY TO

THE POOR

The reason

The availability of rice under PDS is on an average 15 kg/month per family

The requirement of rice for an average size family in rural area is 50 kg/month

The gap is on average 35 kg/monthThe 35 kg/month is used to be procured

from open market2/3rd of the food security of the poor

becomes vulnerable and subject to market fluctuations

The coping mechanism

The stream of income of the poor is not regular-it is fluctuating on day basis

The expenditure for food for each day is more or less the same

The negative gap is being met by the poor either through borrowing or obtaining the food grains on credit basis or adjusted with low intake

The sufferers in the family are women and children

Objectives

To attempt to minimise the “Food Gap” in POP and the Poor

To facilitate for the emergence of ‘Total Food Security’ to the target poor at household level

To minimize the rate of exploitation in consumption expenditure made by the poor.

To provide access to good quality and accurate quantity of rice by the target poor through cheaper rates

TO correlate the nutritional improvement in the pregnant women and children with food security initiative

Rice Credit Line-Reduction in Food Gap

Identifying the gap between the actual requirement of rice per month for each house-hold and the rice availability from FP shop

Consolidating the requirement at VO levelProvision of funds from the CIF @ 90 % of

the required funds – 10% being the beneficiary contribution

The Cyclical Process in Rice Credit Line

Procurement of required rice on monthly basis by the VO from open market

Distribute it to SHG members through SHGs

Recovery of money through 3 or 4 installments by the VO from SHGs in the same month with little profit margin

The Process

Sitting with the members of each SHG Analyse the consumption pattern Arriving at the rate of losses in respect of

purchase of each commodity Find out of the requirement of each

memberImplementation in few VOs in each

Mandal.

The facilitation support

Training the VO Executive CommitteeTraining the CC and Activists in pilot

villages Facilitating the emergence of purchase

committee, monitoring committee and recovering committee in each VO.

Introduction of Books of Accounts.

Implementation process-the collection of indent

Initially, requirement of each member in each SHG will be collected.

Requirements of the VO will be arrived.

Proposal will be sanctioned and the VO will be SPIA.

The purchase committee procures the rice by conducting market survey in respect of quality and the price of the commodity.

The distribution committee will distribute to SHG leaders.

The SHG leaders will distribute to each member on the same day.

At every stage of distribution, the acknowledgements will be collected.

Implementation process-the distribution

Time line

First of every month SHG requirement is collected,

2nd to 4th of every month VO level requirement is collected,

5th to 10th of every month, distribution of rice from the mill to the VO, VO to SHG, SHG to members.

Time line (contd..)

10th every month, last date for distribution to the last member and collection of 1st installment.

17th- 2nd installment, 24th , 3rd installment , 30th / 31st final installment.

The basic model-rice centered

Only rice will be included Recycling will be for

every month or for every six months

One month-procurement from open market or by procuring the paddy

Six months- procurement of paddy, mill it in local rice mill and distribute to SHGs for every six months

The Comprehensive model

The commodity basket includes five commodities- rice, red gram, tamarind, edible oil and red chillies

It will be either one month model or three month model or six month model

In chenchu and other tribal areas the Food Security Basket will comprise 25-30 commodities-all house hold requirements

Procurement If rice or paddy, it is at VO level In respect of red gram,

tamarind, edible oil and red chillies it will be at VO level or at MS level or at Area level

At VO level and MS level procurement committees are positioned out of the VO-EC or MS-EC as the case may be

At AREA level the procurement committee is constituted with two members from each MS within that MS

Recovery

If it is monthly recycling, the recovery will be completed from the members within 3 weeks

If it is 3 month/6 month model, recovery will be completed within 5 months

In monthly model, the instalments will be on weekly basis

In 6 monthly model the instalments will be on monthly basis

Funds

The corpus of the SHGThe CIF from the VO/MSThe cash credit limit by the bank to the VO

Inclusive approach

Within the SHG, the food security plan is prepared by the SHG taking each member’s requirement , particularly the POP- both quality and quantity and the nature of food grains

The repayment instalments will be fixed as per the convenience of the members

The small loan provision is available in the SHG to the member in case she is not able to repay that instalment

A poor women in Dondapadu Village of Thulluru Mandal Cooking Rice

The progress

Total no of VOs – 27,000No of VOs covered – 6427No of SHGs covered –1,63,241No. of house-holds covered – 17,67,437Quantity of rice – 61,860 MT/month

-- 742,323 MT/yearTotal turnover per year -- 817 croresTotal cost of the project – Rs.68 crores

ANALYSIS OF "FOOD GAP" IN POOREST OF THE POOR AND THE POOR HOUSE-HOLDS

Sl. No.

Name of the House Hold

Family members per

dayrequireme

nt

Monthly

requireme

nt

Consumption

Adults

Children

Before RCL Deficit(in

Kgs)

% of deficit

After RCL Deficit(in

Kgs)

% of deficitper

day

per mont

h

per day

per month

.(1) .(2) .(3a) .(3b) .(4) .(5) .(6a) .(6b) .(7) .(8) .(9a) .(9b) .(10) .(11)

1Kalva China Mariamma 3 3 2 60 1.6 48 12 20 1.8 54 6 10

2Kalva Peda Mariamma 3 2 1.8 54 1.5 45 9

16.7

1.7 51 3 5.6

3Kukkamudi Jyothi 3 3 2 60 1.6 48 12 20 1.8 56 6 10

4Macherla China Venkaiah

4 4 3 90 2.6 78 1213.3

2.8 84 6 6.7

5Kalva Seshamma 3 3 2 60 1.6 48 12 20 1.8 54 6 10

6Dasari Masthanamma

4 3 3 90 2.6 78 1213.3

2.8 84 6 6.7

Source of Supply of Rice to the Poorest of the Poor & the Poor

Sl. No.

Name of the House

Hold

Source of Supply Source of Funding

Before RCL After RCLBefore

RCLAfter RCL

FP shop

s

Kirana

Shops

Paddy Milling

Total

FP shops

Kirana

Shops

Paddy Milling

RCL

Total

Wages

Debt

Wages

Debt

RCL

.(1) .(2) .(3a).

(3b)

.(3c)

.(3d

)(4a) .(4b)

.(4c)

.(4d

)

(4e)

(5a)(5b

)(5c)

(5d)

(5e)

1Kalva China Mariamma

20 28 0 48 20 0 0 34 54 -

2Kalva Peda Mariamma 16 29 0 45 16 0 0 35 51 -

3Kukkamudi Jyothi 25 23 0 48 25 0 0 31 56 -

4Macherla China Venkaiah

30 48 0 78 30 0 0 54 84 -

5Kalva Seshamma 26 21 0 47 26 0 0 28 54 -

6Dasari Masthanamma

27 51 0 78 27 0 0 57 84 -

The Impact

Reduction in “Food Gap” and incre3ase in food intake by the poor

Reduction in price Increase in real income Increase in quality Ensuring “Total Food

Security” Caring for the aged,

destitutes and pregnant women

Capital formation in VOs and MSs