NATIONAL FOOD SECURITY
1. Context
In a Cabinet decision, the Center decided to provide 5kg of free food grains per month for the 81 crore beneficiaries of the National Food Security Act (NFSA) during 2023, rather than charging them a subsidized amount of 3 rupees a kg of rice, 2 rupees a kg of wheat and 1 rupee a kg of coarse cereal as is currently done.
2. What is the impact of this measure on the food subsidy bill?
- During the pre-Covid years, the Centre's food subsidy bill on account of the NFSA amounted to around ₹2 lakh crore.
- During covid-19 years (2020-2022) the amount has doubled.
- Now the center has to spend an additional ₹15,000 crore to ₹16,000 crores on providing free food grains under the NFSA for a year.
- However, the center will save around ₹2 lakh crore by ending the PMGKAY scheme.
3. Prandhan Manthri Gaaribkalyan Anna Yojana (PMGKAY)
- PMGKAY is a part of the Pradhan Mantri Garib Kalyan Package (PMGKP) to help the poor fight the battle against Covid-19.
- The scheme aimed at providing each person covered under the National Food Security Act 2013 with an additional 5 kg of grain (wheat or rice) for free, in addition to the 5 kg of subsidized food grain already provided through the Public Distribution System (PDS).
- It was initially announced for three months (April, May, and June 2020), covering 80 crore ration cardholders. Later it was extended till September 2022.
- Its nodal ministry is the Ministry of Finance.
- The benefit of the free ration can be availed through portability by any migrant labour or beneficiary under the One Nation One Ration Card (ONORC) plan from nearly 5 lakh ration shops across the country.
Cost: The overall expenditure of PMGKAY will be about Rs. 3.91 lakh crore for all the phases.
Challenges: The beneficiaries of the National Food Security Act are based on the last census (2011). The number of food-insecure people has increased since then and they remain uncovered.
Issues
Expensive: It's very expensive for the government to sustain, increasing the need for an abundant supply of cheap grains. In 2022, India has had to restrict exports of wheat and rice after erratic weather hurt harvest, adding to pressure on food prices, and rattling global agricultural markets.
Increase Fiscal Deficit: It could pose a risk to the government's target to further narrow the fiscal deficit to 6.4% of gross domestic product.
Inflation: The decision on the program could also affect inflation. The prices of rice and wheat, which make up about 10% of India's retail inflation, are seeing an uptick due to lower production amid a heatwave and patchy monsoon.
4. National Food Security Act (NFSA), 2013
It was notified on 10th September 2013.
Objective: To provide for food and nutritional security in the human life cycle approach, by ensuring access to adequate quantities of quality food at affordable prices to people to live a life with dignity.
Coverage: 75% of the rural population and up to 50% of the urban population for receiving subsidized food grains under the Targeted Public Distribution System (TPDS). Overall, NFSA caters to 67% of the total population.
Eligibility: Priority Households to be covered under TPDS, according to guidelines by the state government. Households covered under the existing Antyodaya Anna Yojana.
Provisions:
- 5Kgs of food grains per person per month at Rs.3/2/1 per Kg for rice/wheat/ coarse grains.
- The existing AAY household will continue to receive 35 Kg of foodgrains per household per month.
- Meal and maternity benefits of not less than Rs. 6000 to pregnant women and lactating mothers during pregnancy and six months after childbirth.
- Meals for children up to 14 years of age.
- Food security allowance to beneficiaries in case of non-supply of entitled foodgrains or meals.
- Setting up grievance redressal mechanisms at the district and state levels.
5. For Prelims & Mains
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For Prelims: National Food Security Act (NFSA), Pradhan Manthri Gaaribkalyan Anna Yojana (PMGKAY), Pradhan Mantri Garib Kalyan Package (PMGKP), Public Distribution System (PDS), and One Nation One Ration Card (ONORC).
For Mains: 1. What are the reformative steps taken by the Government to make the food grain distribution system more effective in order to achieve food security?
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Source: The Hindu
