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LATEST NEWS UPDATES | Newly introduced provision in Food Security Bill to cost additional burden of rs 1000 crore: Tamil Nadu Govt-TE Narasimhan

Newly introduced provision in Food Security Bill to cost additional burden of rs 1000 crore: Tamil Nadu Govt-TE Narasimhan

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published Published on Aug 25, 2013   modified Modified on Aug 25, 2013
-The Business Standard


Chief Minister J Jayalalithaa in a letter to the Prime Minister said "the newly introduced proviso leaves the fixation of the issue price to the discretion of the Central Government.

Chennai: The Tamil Nadu government today said that the newly introduced proviso leaves in the Food Security Bill for the fixation of the issue price to the discretion of the Central Government would lead to an additional burden of Rs 1,000 crore to the state government.

Chief Minister J Jayalalithaa in a letter to the Prime Minister said "the newly introduced proviso leaves the fixation of the issue price to the discretion of the Central Government. In the event that the issue price is fixed at the economic cost of rice, this would place an additional huge financial burden of around Rs 1,000 crore on the Government of Tamil Nadu".

She also urged the Centre to provide a legally binding assurance that the difference in quantity between what has been assured through the newly introduced second proviso to Clause 3(1) and what is eligible under Clause 3(1) read with Clause 3(2) will be supplied to the States at the price of Rs 3 per kilogramme or at least at the current price applicable for Above Poverty Line families of Rs 8.30 per kilogramme.

Lack of a clear assurance on this aspect is a lacuna which has to be set right through a further amendment to the second proviso to Clause 3(1) or to Schedule IV indicating clearly the issue price for the additional allocation.

The Chief Minister further added, her suggestion to amend Clause 3(2) to cover the entire urban population as households eligible for allocation of subsidised food grains has not yet been accepted. It may be noted, earlier she asked the Centre to increase the urban coverage to 100% or at least 75% of the population on par with rural areas.

Among the other suggestions include amendment in the Ordinance to guarantee a much longer term for an assured level of subsidy from the Centre, amendment to make it incumbent on the Centre to implement all necessary measures, including import of food grains when warranted, to ensure continued supply of food grains and not leave the States to fend for themselves after providing limited financial assistance.

A provision to obligate the Central Government to import food in times of scarcity is very crucial to make this legislation truly a Food Security Act.

The State Governments are also obliged under the first proviso to Section 10(1) to prescribe guidelines and complete identification of the eligible households within 180 days of the commencement of the Ordinance.

This has been extended to 365 days. As the identification of eligible households by the State is contingent on the completion of the National Population Register and Socio Economic Caste Census (SECC),

"I am not sure whether even one year's time is a realistic time frame. This issue also may need to be revisited," said the Chief Minister.

While some of the key issues have been addressed in the first set of amendments proposed, there are still some outstanding issues which would require to be addressed before the present National Food Security Bill truly assures food security to the Nation and in particular to Tamil Nadu, said the Chief Minister, who requested the Prime Minister to consider the remaining suggestions for amendments and ensure that State's concerns are addressed before the Bill is passed.


The Business Standard, 25 August, 2013, http://www.business-standard.com/article/economy-policy/newly-introduced-provision-in-food-security-bill-to-cost-additional-burden-of-rs-1000-crore-tamil-nadu-g


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