NATIONAL FOOD SECURITY ACT
1. Context
Cereal inflation based on the official consumer price index has been ruling at double digits year-on-year since September 2022.
For a majority of Indians, the 813.5 million persons covered under the National Food Security Act (NFSA), out of a total 1,400 million-plus population didn’t matter beyond a point, until recently.
2. About the food inflation rate in India
- As of September 5, 2023, the food inflation rate in India is 8.88%.
- This is based on the All-India Consumer Price Index for Agricultural Products (CPI-AP), which measures the change in prices of a basket of food items consumed by rural and urban households.
- The CPI-AP food inflation rate was 7.03% in June 2023 and 5.38% in July 2022.
3. The reasons for cereal inflation
There are several reasons why cereal inflation is high in India. These include:
- The Russia-Ukrainian war has disrupted global wheat exports. India is a major importer of wheat, and the war has led to a shortage of wheat in the global market, which has pushed up prices.
- A poor monsoon season in India has damaged crops. The monsoon season is crucial for agriculture in India, and a poor monsoon season can lead to lower crop yields, which can also push up prices.
- Higher transportation costs: The cost of transporting food has been rising due to higher fuel prices. This has also contributed to the rise in cereal prices.
- Lower domestic production: The production of cereals in India has been declining in recent years. This is due to several factors, including the lack of investment in agriculture, the ageing farmer population, and climate change.
- Government policies: The government has imposed export restrictions on wheat and rice, which has limited the supply of these cereals in the market and pushed up prices.
3. National Food Security Act, 2013
- The National Food Security Act, 2013 (NFSA) is an Act of the Parliament of India that aims to provide food and nutritional security in the human life cycle approach, by ensuring access to an adequate quantity of quality food at affordable prices for people to live a life with dignity and for matters connected therewith or incidental thereto.
- The Act was enacted on July 5, 2013, and came into force on September 1, 2013.
- It covers two-thirds of the population of India, which is about 813 million people.
3.1. Salient features
- The Public Distribution System (PDS) is now governed by provisions of the National Food Security Act, 2013 (NFSA).
- Coverage under PDS is de-linked from the erstwhile 'poverty estimates'.
- The Act provides coverage for nearly 2/3rd of the country's total population, basis Census 2011 population estimates.
- 75% of the Rural and 50% of Urban population is entitled to receive highly subsidised foodgrains under two categories of beneficiaries Antodaya Anna Yojana (AAY) households and Priority Households (PHH).
- State/UT-wise coverage is determined by the erstwhile Planning Commission (now NITI Ayog) based on the 2011-12 Household Consumption Expenditure survey of NSSO.
- The Act entitles 35 kg of foodgrain per AAY Household per month, whereas 5 Kg of foodgrain per PHH Person per month.
- Identification of beneficiaries/households under NFSA is done by the respective State/UT Government, which is required to frame its own criteria.
- Highly subsidised Central Issue Prices of Re.1, Rs.2 and Rs.3 for Coarse-grains, Wheat and Rice respectively, kept unchanged till June 2019.
- No reduction in foodgrains allocation to any State/UT under NFSA. Allocation gaps if any, are covered with Tide-Over allocation
- Eldest woman of the beneficiary household (18 years or above) is considered as 'Head of Family' to issue ration cards.
- Grievance redressal mechanisms, through State Food Commissions, DGROs, and Vigilance Committees at different levels are provisioned for Women's Empowerment.
- Provisions for disclosure of records relating to PDS operations, placing of beneficiaries' list in public domain/portals, for enhanced transparency
- Assistance to States/UTs for meeting expenditure on intra-state transportation & handling of foodgrains and FPS Dealers' margin
3.2. The eligibility criteria
Rural areas:
- Households with an annual income of less than Rs. 10,000 per annum.
- Households with at least two adult members who are unable to work due to old age, disability, or illness.
- Households that depend on agriculture for their livelihood and have an annual income of less than Rs. 5000 per annum.
- Households that have been identified as Below the Poverty Line (BPL) by the state government.
Urban areas:
- Households with an annual income of less than Rs. 15,000 per annum.
- Households with at least two adult members who are unable to work due to old age, disability, or illness.
- Households that depend on non-agricultural activities for their livelihood and have an annual income of less than Rs. 10,000 per annum.
- Households that have been identified as Below Poverty Line (BPL) by the state government.
4. Conclusion
- All NFSA beneficiaries, before January 2023, were getting 10 kg of rice or wheat per month practically free of cost.
- Since that more or less met their entire requirement the last national sample survey of 2011-12 revealed the per capita cereal consumption at 11.22 kg for rural and 9.28 kg for urban India they hardly had to buy grain from the open market.
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For Prelims: National Food Security Act, inflation, Below Poverty Line, All-India Consumer Price Index for Agricultural Products, Russia-Ukrainian war, Public Distribution System, Antodaya Anna Yojana, Priority Households, Planning Commission, NITI Ayog,
For Mains:
1. Evaluate the impact of poor monsoon seasons and climate change on cereal production in India. How can these challenges be addressed to ensure food security for the population? (250 Words)
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Previous Year Questions
1. With reference to the provisions made under the National Food Security act, 2013 consider the following statements: (UPSC 2018)
1. The families coming under the category of 'below poverty line (BPL)' only are eligible to receive subsidized food grains.
2. The eldest woman in a household, of age 18 years or above, shall be the head of the household for the purpose of issuance of a ration card.
3. Pregnant women and lactating mothers are entitled to a 'take-home ration' of 1600 calories per day during pregnancy and or six months thereafter.
Which of the statements given above is/are correct?
A. 1 and 2 B. 2 only C. 1 and 3 D. 3 only
Answer: B
2. With reference to the National Food Security Act, which of the following statement is/are correct? (UPPSC 2019)
I. It will cover up to 75 percent rural and 50 percent urban population.
II. Special focus on nutritional support to women and children.
III. Eldest woman of above 18 years of age will be head of household.
Select the correct answer using the codes given below:
A. I and II are correct
B. II and III are correct
C. I, II and III are correct
D. None of these
Answer: C
3. In a given year in India, official poverty lines are higher in some States than in others because (UPSC 2019)
A. Poverty rates vary from State to State
B. Price levels vary from State to State
C. Gross State Product varies from State to State
D. Quality of public distribution varies from State to State
Answer: B
4. With reference to inflation in India, which of the following statements is correct? (UPSC 2015)
A. Controlling the inflation in India is the responsibility of the Government of India only
B. The Reserve Bank of India has no role in controlling the inflation
C. Decreased money circulation helps in controlling the inflation
D. Increased money circulation helps in controlling the inflation
Answer: C
5. With reference to India, consider the following statements: (UPSC 2010)
1. The Wholesale Price Index (WPI) in India is available on a monthly basis only.
2. As compared to Consumer Price Index for Industrial Workers (CPI(IW)), the WPI gives less weight to food articles.
Which of the statements given above is/are correct?
A. 1 only B. 2 only C. Both 1 and 2 D. Neither 1 nor 2
Answer: C
6. Consider the following statements: (UPSC 2020)
1. The weightage of food in Consumer Price Index (CPI) is higher than that in Wholesale Price Index (WPI).
2. The WPI does not capture changes in the prices of services, which CPI does.
3. Reserve Bank of India has now adopted WPI as its key measure of inflation and to decide on changing the key policy rates.
Which of the statements given above is/are correct?
A. 1 and 2 only B. 2 only C. 3 only D. 1, 2 and 3
Answer: A
7. Who among the following is the head of the standing committee on economic statistics set up by Ministry of Statistics and Programme Implementation (MOSPI)? (SSC CGL 2020)
A. Krishnamurthy Subramanian
B. Manmohan Singh
C. Pronab Sen
D. Raghuram Rajan
Answer: C
8. As per Ministry of Statistics and Programme Implementation, which state of India has the highest per capita income as of Sep 2019? (SSC CPO 2019)
A. Goa B. Punjab C. Tamil Nadu D. Gujarat
Answer: A
9. The Department for Promotion of Industry and Internal Trade (DPIIT) has revised the base year index of Eight Core Industries having a combined weight of about 40.27 percent in the Index of Industrial Production. Which one of the following is not one of the Eight Core Industries? (CDS 2022)
A. Coal
B. Refinery products
C. Rubber products
D. Cement
Answer: C
10. Read the following passage and answer the question that follows. Your answers to these items should be based on the passage only. (UPSC 2021)
Policymakers and media have placed the blame for skyrocketing food prices on a variety of factors, including high fuel prices, bad weather in key food producing countries, and the diversion of land to non-food production. Increased emphasis, however, has been placed on a surge in demand for food from the most populous emerging economics. It seems highly probable that mass consumption in these countries could be well poised to create a food crisis.
With reference to the above passage, the following assumptions have been made:
1. Oil producing countries are one of the reasons for high food prices.
2. If there is a food crisis in the world in the near future, it will be in the emerging economies. Which of the above assumptions is/are valid?
A. 1 only B. 2 only C. Both 1 and 2 D. Neither 1 nor 2
Answer: D
11. India has experienced persistent and high food inflation in the recent past. What could be the reasons? (UPSC 2011)
1. Due to a gradual switchover to the cultivation of commercial crops, the area under the cultivation of food grains has steadily decreased in the last five years by about 30.
2. As a consequence of increasing incomes, the consumption patterns of the people have undergone a significant change.
3. The food supply chain has structural constraints.
Which of the statements given above are correct?
A. 1 and 2 only B. 2 and 3 only C. 1 and 3 only D. 1, 2 and 3
Answer: B
12. With reference to inflation in India, which of the following statements is correct? (UPSC 2015)
A. Controlling the inflation in India is the responsibility of the Government of India only
B.The Reserve Bank of India has no role in controlling the inflation
C. Decreased money circulation helps in controlling the inflation
D. Increased money circulation helps in controlling the inflation
Answer: C
13. With reference to the Agreement at the UNFCCC Meeting in Paris in 2015, which of the following statements is/are correct? (UPSC 2016)
1. The Agreement was signed by all the member countries of the UN and it will go into effect in 2017
2. The Agreement aims to limit greenhouse gas emissions so that the rise in average global temperature by the end of this century does not exceed 2°C or even 1.5°C above pre-industrial levels.
3. Developed countries acknowledged their historical responsibility in global warming and committed to donate $ 1000 billion a year from 2020 to help developing countries to cope with climate change.
Select the correct answer using the code given below:
A. 1 and 3 only B. 2 only C. 2 and 3 only D. 1, 2 and 3
Answer: B
14. The Public Distribution System, which evolved as a system of management of food and distribution of food grains, was relaunched as _______ Public Distribution System in 1997. (SSC JE EE 2021)
A. Evolved B. Transformed C. Tested D. Targeted
Answer: D
15. Under the Antyodaya Anna Yojana, up to what quantity of rice and wheat can be purchased at a subsidised cost? (FCI AG III 2023)
A. 35 kg B. 40 kg C. 30 kg D. 25 kg E. 50 kg
Answer: A
16. Among the following who are eligible to benefit from the "Mahatma Gandhi National Rural Employment Guarantee Act"? (UPSC 2011)
A. Adult members of only the scheduled caste and scheduled tribe households.
B. Adult members of below-poverty line (BPL) households.
C. Adult members of households of all backward communities.
D. Adult members of any rural household.
Answer: D
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