Food Security Bill – Combating Hunger!

A huge percentage of the Indian population lives below the poverty line where getting one square meal a day is a challenge. The food security bill aims to satisfy this basic want and in that sense although it encourages welfare economics, the intention is noble. This is what would need to be weighed against other roadblocks.

Before we comment or discuss the bill, it is indeed very necessary to understand the Food Security Bill.

The Food Security Bill is a bill for consideration before the Government of India. The bill aims to provide subsidized foodgrain to around 67 percent (75% of the rural population and up to 50% of the urban population) of India's 1.2 billion people. As per the provisions of the bill, beneficiaries would get rice at INR 3/kg, wheat at INR 2/kg, and coarse grains at INR 1/kg. These rates would be valid for three years. Every pregnant woman and lactating mother would get free meal during pregnancy till six months after child birth. They will also get a maternity benefit of INR 6,000 in installments. Children in the age group of 6 months to 6 years, the Bill guarantees an age-appropriate meal, free of charge, through the local anganwadi. For children aged 6-14 years, one free mid-day meal shall be provided every day (except on school holidays) in all schools run by local bodies, government and government aided schools, up to Class VIII. Children who suffer from malnutrition will be identified through the local anganwadi and meals will be provided to them free of charge “through the local anganwadi”.

The Bill states that central and state governments “shall endeavour to progressively undertake” various PDS reforms, including: doorstep delivery of foodgrains; ICT applications and end-to-end computerisation; leveraging “aadhaar” (UID) for unique identification of entitled beneficiaries; full transparency of records; preference to public institutions or bodies in licensing of fair price shops; management of fair price shops by women or their collectives; diversification of commodities distributed under the PDS; full transparency of records; and “introducing schemes such as cash transfer, food coupons or other schemes to the targeted beneficiaries in lieu of their foodgrain entitlements” as prescribed by the central government. In case of non-supply of foodgrains, states will have to pay food security allowance to beneficiaries.

The central government has pushed the Food Security Bill with amazing alacrity. The Congress-led United Progressive Alliance (UPA) that rules India, has got the Bill passed by an ordinance, not through the usual parliament route. Within six months from the date of promulgation, the government will have to seek the approval of this Bill through parliament to avoid the ordnance falling through. 

NSSO surveys show that the proportion of hungry people fell from 15.3% in 1983 to 2% in 2004. By now, it is probably 1%. So, forget the notion that hungry Indians are crying out for cheap grain. No, per-capita consumption of cereals has fallen steadily in all income groups, including the poorest. They are shifting to superior foods: proteins, milk and tea.

Besides, the NDA launched the Antyodaya programme for the very poorest back in 2000, providing wheat at 2 and rice at 3 per kg. The Bill simply repeats the dose - nothing new at all for the poorest.

The main problem for the government is the resources for implementation of the bill. Can we produce such a large amount? Once the cheap food is available, people will consume more and more increasing the burden on supply side. Can we store such large quantities of food supply? India presently has provision only for 30 million tons but this act will need 60 million tons of storage. In order to meet the increased requirement of foodgrain for PDS, export of cereals should be stopped immediately. If basmati rice is to be exported, an equal amount of ordinary rice must be imported. It is highly unethical to export foodgrain when our own people are dying of starvation. And we congratulate ourselves on record foodgrain exports at a time when the per capita food availability at home is declining — and we lose money on every tonne that we export. 

Secondly, actual distribution cannot begin unless the eligible households are identified. The Bill does not specify criteria for the identification of households eligible for Public Distribution System (PDS) entitlements. The Central Government is to determine the state-wise coverage of the PDS, in terms of proportion of the rural/urban population. Then numbers of eligible persons will be calculated from Census population figures. The identification of eligible households is left to state governments. The allocation of foodgrains is arbitrary and is neither based on population nor poverty. The final results of the Socio-Economic and Caste Census will not be available for all the states, especially the larger states like UP, Bihar and Tamil Nadu, until the beginning of 2014.

Thirdly, The Bill encourages states to reform the PDS, including doorstep delivery of foodgrain, end-to-end computerisation; and leveraging "Aadhaar" (UID) for unique identification of entitled beneficiaries. The progress is extremely slow, though not in all states. Chhattisgarh, Orissa, Himachal Pradesh, and Rajasthan have undertaken state-level reforms by extending coverage, improving delivery and increasing transparency. The best results are seen in Chhattisgarh. Here, private dealers have been replaced by panchayats, commissions have been increased and more than 80 per cent of the families have been covered under the scheme (as opposed to only 40 per cent who are officially recognised as being Below the Poverty Line or BPL under the Central government). A regular monitoring and grievance redressal mechanism leads to swift action if foodgrain does not reach the people. The fear is, unless something miraculous happens to inject life and energy to the PDS, it will get bogged down under the bigger load to serve many more customers. The result will be chaos of catastrophic proportions.

Most importantly, buying such huge quantities of food at higher rates and selling them to consumers at very low rates will need government subsidies. Already the huge food subsidy has weighed down India’s public finances pushing the budget deficit to unmanageable proportions. When the Bill’s intended provisions are rolled out across India, the food subsidy burden of the government will jump three times. It will run to Rs. 125, 000 crores per year. Even a school boy would say that India simply does not have so much money. How will the government manage to keep the subsidized scheme going?

The BJP condemns the Bill as a pre-election gimmick. But it will surely fail. Many states already provide cereals more cheaply than the Bill. Tamil Nadu provides 20 kg of free rice to poor families. Other southern states provide rice at 1 per kg. Chhattisgarh, Madhya Pradesh and Rajasthan are going to have state elections, and all three now offer wheat or rice at 1 per kg. So, in several states, the additional subsidy of the Bill will not mean cheaper food for consumers, simply less subsidy at the state level. The Bill may mean cheaper cereals in some states, like Bihar, Jharkhand and Uttar Pradesh. But the Public Distribution System (PDS) is in terrible shape in these states. To the extent the PDS improves, the chief ministers will get the credit. 

So looking at this we understand that the bill may be brought on with a noble cause but need lot of reforms and a very strong planning commission in order for rightful implementation of the bill. Lets hope to watch if Rajya Sabha brings light to this aspects of the bill in its session.

In the ultimate analysis, the constraints to food security and hunger are rooted in bad policies, faulty design, lack of appropriate monitoring and evaluation, poor governance and lack of political will. Action is needed on all the fronts.