Sunday, June 19, 2011

Food Ministry prepared New Food Security Bill in line with NAC’s Recommendation

The food ministry prepared a new food security bill, reworking an earlier version. In August 2010 the UPA government had dismissed the previous draft of the Food Bill after it was found wanting by the Congress leadership.

The Sonia Gandhi-led National Advisory Council, which oversees the government’s welfare agenda, had made number of recommendations, including keeping the country’s food distribution system open for all, regardless of poverty status. PM Manmohan Singh had asked his Economic Advisory Council (EAC), led by C Rangarajan, to find out the financial implications of the NAC’s recommendations.

Even though the EAC had suggested restricting cheap grains to priority households only, or those below the poverty line (BPL), the new bill provides for legal entitlement for both priority and general categories, which takes care of a key concern of the NAC. Under the new bill, entitlements for BPL households are wholly in line with the NAC’s draft food bill which was made public on 7 June 2011.

All BPL households would be given 7 kg per person or 35 kg per family of government-held grains at a subsidised price of R1 a kg for millet, wheat for R2 a kg and rice for R3 a kg.

Those above the poverty line would get 3 kg of grains per person, though the NAC had recommended 5 kg per person. These would be available at half the price at which the government buys from farmers, also called minimum support price (MSP).

The new bill also provides for cash benefits to meet enhanced food requirements of pregnant women, who would get Rs 1000 for first six months of pregnancy, and lactating women, as well as children up to 14 years.

The new requirements indicate that the government’s expenses on distributing cheap grains is expected to rise from Rs 83000 crore to Rs 1 lakh crore and it will have to procure 10 million more tonnes of foodgrains.

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