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Resource centre on India's rural distress
 
 

States oppose Centre’s proposal, insist on food for all

They contest Planning Commission’s poverty estimates 

Food Bill exercise calls for detailed discussion and exclusive meeting: States

Transfer of food subsidy in cash to BPL families won’t serve the purpose: Maharashtra

The Centre has asked the States to put a cap on the number of Below Poverty Line (BPL) beneficiaries under the Targeted Public Distribution System (TPDS) for purposes of theproposed National Food Security Bill. It also wants the BPL population identified afresh now, and every five years thereafter, as part of the TPDS reform.

At present, the Centre allocates foodgrains based on the 1993-94 poverty estimates, to 6.52 crore BPL families. The number would decline to 5.91 crore by the 2009 estimates of the Planning Commission. As against this, the BPL cards issued by the State governments number 11.03 crore.

“For the proposed law, of crucial importance is the issue of numerical ceiling for BPL families who would be entitled to receive a certain minimum quantity of subsidised foodgrains per month,” says a note circulated to the States and Union Territories. Even this number may be revised after a Task Force, set up by the , comes out with its suggestions on the methodology of poverty estimation.

The note suggests a ceiling on the number of the poor who can avail themselves of foodgrains from the Central pool, and elimination of the Above Poverty Line population altogether from the PDS. Only then, it seems, will the Centre be able to fulfil the Congress’ election promise of 25 kg of foodgrains per BPL family at Rs. 3 a kg.

At the recent Food Ministers’ conference, a majority of the States disagreed with the Centre’s proposal and contested the Planning Commission’s poverty estimates.

On the contrary, they insisted on “food for all,” a concept that includes both the rural and urban poor. Civil society groups and the Left parties are also pushing for a universal PDS, instead of the present “targeting” system that keeps most poor people out due to either systemic failure or corruption. Malnutrition and under-nourishment should be measured, besides entitlement and access to food security for people, say civil society groups.

Interestingly, the various options the Centre is looking at for ensuring food security include transfer of food subsidy as cash grants directly to the States or disbursement of food subsidy in cash, leaving it to the States to procure and distribute foodgrains to the BPL population.

Another suggestion is to transfer food subsidy directly to “identified” BPL families in cash, instead of supplying foodgrains under the TPDS. “The positive aspect of this suggestion is that such a process would be more efficient and the money will get directly transferred to identified BPL families who will have the choice of buying directly from the market. However, this may not ensure food security to all members of the family,” says the note.

There is no clarity yet on whether the BPL and Antyodaya Anna Yojna beneficiaries would be merged or remain separate.

The Food Bill exercise will also trigger reforms of the TPDS. Suggestions include delineating the responsibilities of the Centre and the State governments, setting up bulk storages and district-level storage capacities, delivering foodgrains on the doorstep of fair price shops and Smart-card-based delivery of commodities.

At the conference, several States said the subject required a detailed discussion at an exclusive meeting.

Gujarat demanded that the draft of the proposed Bill be given to the States in advance to enable them to examine it.

Food Minister Sharad Pawar’s home State, Maharashtra, opposed a ceiling on the BPL list and transfer of food subsidy to the State. It said transfer of food subsidy in cash to identified BPL families would not serve the purpose due to “market and social constraints.”