8/19/2014 Mrunal Summery: National Food security Act India, Salient features

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Food Security Act: Salient features, Benefits, Entitlements, grievances redressal system &
criticism
1. Prologue
2. National Food security Act
3. Prices and Entitlements under NFSA
4. Grievance Redressal Mechanism:
5. Deadlines under Food security Act
6. Implementation in States/UT
7. Targeted PDS system reformed
8. Limitation of NFSA:
Prologue
Economic Survey Chapter 8: Agriculture and Food Management. SIX subparts:
1. Fertilizer subsidy & schemes, Budget-2014 announcement
2. Minimum support pricing
3. National food security act (NFSA)
4. WTO Bali Summit
5. APMC reforms, National market for agriculture, NSEL crisis
6. El Nino and its impact on Indian monsoon
National Food security Act
India: Per capita availability of Food
foodgrain ~185kg
edible oil ~16kg
milk 295 gm/day (higher than world avg.)
eggs 55/year
Fruits 172gm/day
Vegetables 350gm/day

Timeline
1997
Targeted Public distribution system (TPDS)
Two tier pricing structure: BPL and APL.
State Governments decide BPL and APL based Planning commission
2000
Antyoday Anna Yojana
25 kg foodgrain per family
Rice price: Rs.3/kg
Wheat price: Rs.2/kg
2013 National food security act passed. Todays topic of discussion
8/19/2014 Mrunal Summery: National Food security Act India, Salient features
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Responsibility under Food security act
UNION STATE
allot foodgrains to states as per their
requirement
identifying the eligible households
transport food grain to states Deliver it to beneficiaries.
if stock insufficient, then give food
allowance to states
if cant deliver foodgrains to beneficiaries, pay them food
allowance. (Union will decide the rates).
67% of Indian population covered.
State Governments have to identify the households in such manner that 75% rural + 50% urban
population covered.
States can use data from socio-economic and caste census (SECC). click me for more details
Who gets what? Prices and Entitlements in NFSA
8/19/2014 Mrunal Summery: National Food security Act India, Salient features
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Ration card in the name of eldest woman of household. If not available then eldest man

Quantitative entitlements
Household Theyll get __ Foodgrain
8/19/2014 Mrunal Summery: National Food security Act India, Salient features
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Antyodaya Anna Yojana (AAY)i.e. bottom strata of BPL population 35 kg for entire family
Priority household 5 kg per person

Who gets what & how much?
Foodgrain households will pay Rs. ___ per kg
Rice 3
Wheat 2
Coarse grains 1
Women preg/lactating*(6 months post birth)
free meals @Anganwadi
Rs.6000 in installments
child: 6 month upto 6 years free meal @Anganwadi
child 6 years to 14 years
free midday meal at school
take-home rations
in case of non-availability of foodgrains
Union will give Food security allowance to states
states will give to beneficiaries
*Assistance to pregnant women under NFSA, is similar to Indira Gandhi Matrutva Shayog Yojana, under
which pregnant women are given Rs.4000 in 3 installments
Grievance Redressal Mechanism:
State Food commission
Supervise all entitlements
evaluate implementation of this act
Power of civil court, punish + penalty up to Rs.5000
1 chairman+ 5 members + 1 secretary
District grievance Redressal officer
First point for complaint under NFSA
Further appeal to State food officer
+ call centres and helplines
Targeted PDS system reformed
Grievance redressal mechanisms at district and state levels.
TPDS stores license- first preference will be given to panchayats, SHGs and cooperatives.
Doorstep delivery of food-grains to TPDS outlets.
ICT tools to ensure transparency
Introduction of schemes like, Aadhar cards, direct cash transfer, food coupons for targeted
beneficiaries (recommended by Kaushik basu committee)
Deadlines under Food security Act
Law came into force
July 2013, 5
th
Deadline to identify eligible households July 2014 (i.e. within a year)
BJP Government Extended household-identification deadline to October 2014
State/UT who already implemented
8/19/2014 Mrunal Summery: National Food security Act India, Salient features
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Full partial
1. Haryana
2. Rajasthan
3. Punjab
4. Chhattisgarh
5. Maharashtra
1. Delhi
2. Chandigarh
3. Himachal Pradesh
4. Karnataka
5. Madhya Pradesh
6. Bihar
Limitation of NFSA:
(List not exhaustive)
1. High fiscal burden- subsidy cost above 1.25 lakh crore rupees per year. (Budget 2014 allotted 1.15
lakh crores, out of that, 88000 crore specially for Food security act.)
2. Government will have to keep large stock of foodgrains but FCI storage capacity insufficient.
3. If so much food grains kept out of open market (and under FCI godowns)=> food inflation, middle
class will suffer.
4. Government may have to import foodgrain during drought years => additional current account deficit.
(CAD)
5. An Adult needs ~14kg foodgrain. While NFSA gives only 5 kg per person to Priority households-
cruel joke and marketing gimmick.
6. Focusing only cereal. What about pulses (to give protein), edible oil (to give fat), fruits, vegetables
(for vitamin) and milk- to combat malnutrition?
7. Malnutrition has its connections with lack of sanitation and medical facilities in rural areas. NFSA
alone insufficient.
8. Parliamentary standing Committee has recommended GPS tracking of trucks, CCTVs in go-downs to
prevent diversion. But this are not implemented.
9. identifying households eligible for this scheme = big challenge
10. Section 44 of the act: During natural calamity and wars- Union and state govt. will not be responsible
for non-supply of foods.
11. Stopping institutional corruption in state PDS machinery = mission impossible #6.
12. Modi decided to shut down planning commission because the renovation Cost was too high. Same is
the problem with this entire PDS system- it needs to be shut down, Government should simply give
foodstamp / DBT to poors, letem buy whatever food they want from open market. These
beneficiaries / entitlements/ mai-bap-raj must end.
13. Economic survey: it doesnt openly say that NFSA is Bogus, but recommends food stamps be given
to poors because (free) market economies use that mechanism.
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grievances-redressal-criticism.html
Posted By Mrunal On 19/08/2014 @ 12:49 In the category Economy