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LATEST NEWS UPDATES | Govt blinks on food security Bill-Liz Mathew

Govt blinks on food security Bill-Liz Mathew

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published Published on Apr 8, 2012   modified Modified on Apr 8, 2012

In a move that could end a face-off within the government on the proposed food security Bill, the food ministry has decided to make everyone, except the so-called creamy layer, eligible for receiving state-subsidized foodgrains.

Those who can afford to pay market prices will be kept out of the intended list of beneficiaries through the introduction of the exclusion criteria in the Bill, which will also seek to allocate foodgrains on a per-individual basis, rather than a per-household one, as initially proposed in the legislation. The cost of implementing the programme will be at least Rs. 1.12 trillion.

These changes will bring the proposed law closer to the one suggested by the National Advisory Council (NAC), headed by Congress party president Sonia Gandhi.

The exclusion criteria would mean that about 27-30% of the population would be ineligible to avail of the benefits of the proposed food security law, said a person in the food ministry familiar with the development.

“The states can determine the eligibility. Under the scheme, the central government will provide foodgrain, excluding this category,” said the person, who did not wish to be identified. On 3 March, Mint had reported that rural development minister Jairam Ramesh proposed to do away with the “priority” (poorest people) and “general” (above poverty line) categories because the government has not been able to complete the socio-economic and caste census (SECC) in many states by its December deadline.

Ramesh wanted to sidestep categories proposed under the food security law to make sure that the welfare impact of the legislation isn’t nullified.

In order to win over the states that had raised objections to legislation in its current form, the food ministry has decided not to make any changes to the existing quota of foodgrains allocated to the states under the public distribution system (PDS).

Under the proposed changes to the Bill, which was introduced in Parliament during the winter session and is currently being studied by a parliamentary standing committee, the Antyodaya Anna Yojana (AAY), the centrally sponsored scheme launched in December 2000 for 10 million of the poorest families, will continue.

The fresh proposals also suggest that the central government could pay transportation charges and commission to shop owners who distribute subsidized grain; the commission is now passed on to the consumer.

Special packages for the backward districts, Jammu and Kashmir and north-eastern states will continue. State governments will be allowed to establish and manage redressal forums for the implementation of the proposed legislation.

The National Food Security Bill, considered to be the brainchild of the NAC, seeks to grant beneficiaries the right to 7kg of foodgrain per month per person at Rs. 3 per kg of rice, Rs. 2 per kg of wheat and Rs. 1 per kg of coarse grains.

The ministry now proposes to provide 5kg of foodgrain per person monthly at the subsidized rates.

The official quoted above said the estimated cost of implementing the new proposals would be Rs. 1.12 trillion. It would cost an additional Rs. 8,000 crore if the Centre pays for the transportation and commission to shop owners. The government would have spent around Rs. 1.09 trillion on PDS anyways going by the 2011 Census, the same official said.

The proposals were finalized by the food ministry on Wednesday and minister K.V. Thomas met both Sonia Gandhi and finance minister Pranab Mukherjee to explain the fresh proposals. Once cleared by the finance ministry, the proposals will go to the standing committee chaired by Congress leader Vilas Muttemwar.

The new proposals signal an “improvement” in the government’s approach to the food security programme, said N.C. Saxena, an NAC member.

He noted that the Bill in its current form was being resisted by states such as Kerala and Andhra Pradesh, which provide subsidized foodgrains for even people who are above the poverty line.

“Still it will be difficult to get consensus from some states that provide 35kg per family because they will have to cut down. Besides, how will the states identify the eligible people unless the SECC is completed.”

Left parties and some opposition-ruled states have raised objections to the Bill, saying it’s not adequate to address the food security concerns of the country. They say the Bill doesn’t have provisions to improve storage facilities and modernize PDS, both of which are essential for a successful food security programme.

Tamil Nadu chief minister J. Jayalalithaa wants the Centre to leave the implementation of welfare schemes to the states, while agriculture minister Sharad Pawar has said it will be difficult to implement the proposed food security Act with the existing distribution system without sweeping reforms.


Live Mint, 4 April, 2012, http://www.livemint.com/2012/04/04233358/Govt-blinks-on-food-security-B.html


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