Thursday, July 21, 2011

FOOD SECURITY BILL


THE National Advisory Council has cleared the draft of the Food Security Bill for follow-up action by the government. It offers 90 per cent of all rural households and 50 per cent of urban households a legal right to subsidised food. It is a major step towards banishing hunger but falls short of expectations of experts like development economist Jean Dreze, who quit the NAC, saying government constraints leave no scope for effectively addressing the problem of hunger and under-nutrition.
Providing food security to all is a national and global challenge but the government seems less than enthusiastic. Its intention became clear when it appointed a committee under C. Rangarajan to vet the NAC proposals, released earlier. Rangarajan suggested that 46 per cent of the rural population and 28 per cent of the urban population be covered under the Act, citing insufficient food availability as a reason. Procuring larger quantities of food grains, the committee argued, would “lead to lower availability of food grains for the open market, pushing up prices”.
Some have questioned the proposal to provide subsidised food to APL (above poverty line) families. Rangarajan wants an inflation-linked price of food for the poor and an MSP (minimum support price)-linked price for APL families to cut the government’s financial burden. Besides, he favours a direct transfer of the food subsidy to the poor through smart cards usable in any store. If food is to be distributed through food stamps or smart cards, then there is no problem of higher procurements or food shortages in the open market pushing up prices. Challenges are numerous but not insurmountable if there is political will. These include financial constraints, raising food productivity and ensuring fool-proof distribution. Large quantities of food go waste due to unscientific storage and poor handling and transportation. The NAC proposals may not be “more of the same” or a case of missed opportunity to radically transfer India’s social policy — as Jean Dreze believes — they mark a step forward and the government has to make sincere efforts to fight hunger and malnutrition, which limit India’s overall growth.

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