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LATEST NEWS UPDATES | Safeguarding the interests of farmers -Nirmala Sitharaman

Safeguarding the interests of farmers -Nirmala Sitharaman

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published Published on Aug 21, 2017   modified Modified on Aug 21, 2017
-The Hindu

Providing food to the poor or targeted groups at subsidised prices is fully WTO-compatible

Transformational changes are taking place in India currently, improving the way we live. These changes are impacting all our lives in small or significant ways. It is gratifying to know that the citizens at large are happy withthese changes. However, forsome who have fed themselves on the fodder that such changes are not for the near future, there is consternation. Even worse, these people find it difficult to comprehend that technology and policy are working together to remove discretion and opaqueness.

The ongoing discourse, particularly in Tamil Nadu, on thePublic Distribution System (PDS), the procurement of grains/pulses from farmers, public storage in Food Corporation ofIndia godowns, commitments made in the World Trade Organisation (WTO), Direct Benefit Transfer, etc. is interesting. However, there are strands in this discourse which are impressionistic and not based on data. They create a populist narrative and distract from the core issues. It is necessary, therefore, to infuse facts into the discourse.

Facts in Tamil Nadu

The PDS in Tamil Nadu is intact and continues to retain the feature of universal coverage even after implementation ofthe National Food Security Act, 2013 (NFSA). Although the guidelines under the NFSA prescribe identification of priority households, there is no denial of any benefit under the PDS. There is no reduction even in the total coverage from the earlier Targeted Public Distribution System, which was effective till Tamil Nadu joined the NFSA in November 2016. The average annual offtake or the annual allocation has remained 36.78 lakh tonnes. The major part of the subsidy for the distribution of foodgrains (90.81% for rice and 91.70% for wheat) is borne by the Government of India.

The implication of this subsidy allocation to Tamil Nadu alone on the Government of India is approximately Rs. 843 crore per month and approximately Rs. 10,120 crore per year. Since the central issue price under the NFSA is much lower compared to the erstwhile Targeted Public Distribution System, the burden on the State government has come down. On implementing the NFSA, the savings for the State exchequer on account of this subsidy, thanks to the lower central issue price, is approximately Rs. 436.44 crore per year.

Union Consumer Affairs Minister Ram Vilas Paswan on August 1 stated in a series of tweets the data for Tamil Nadu and also highlighted the factthat Tamil Nadu gets the highest allocation in the country as ‘tide over’ allocation of 12.52 lakh metric tonnes of foodgrains. The narrative in Tamil Nadu cannot be devoid of these facts.

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The Hindu, 21 August, 2017, http://www.thehindu.com/opinion/op-ed/safeguarding-the-interests-of-farmers/article19530185.ece?homepage=true


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