Food Security Bill.

The following article was written for Niti Central. Pasting it here for reference. This is a rehash of an old blog already published here. Added details of the final bill passed by Parliament. 

The current Public Distribution System classifies card-holders into three categories.

» Above Poverty Line (APL)

» Below Poverty Line (BPL)

» Antyodaya Anna Yojana (AAY)

AAY was launched on December 25, 2000 for the “poorest of the poor”. The scheme was intended for about 1 crore families (equals ~5 crore people) at that point of time. As of June 2011, ~2.43 crore familieshave been issued AAY cards. It was estimated that ~5 per cent of our population are so poor that they cannot afford two meals a day, and therefore need food at highly subsidised rates.

What are the subsidised rates envisaged in the year 2000? Rice at Rs 3/kg and wheat at Rs 2/kg (with an upper limit of 35 kg per family). For the “poorest of the poor“, whose number stands at ~10 crore as of 2011, these rates are being dutifully followed.

In the same year, the National Food Security Bill was first envisaged. We were told that the number of poor people will now be:

Eleven years after the AAY category was defined, the Central Government wants to increase this 5 per cent to 46 per cent rural and 28 per cent urban “poor people”. Is this progress? Is this what we have reduced the aam admi to?

Not happy with increasing the number of poor people to such a large extent, the Bill introduced in the Lok Sabha in 2013 takes a big leap forward:

“The entitlements of the persons belonging to the eligible households referred to in sub-section (1) at subsidised prices shall extend up to seventy-five per cent. Of the rural population and up to fifty per cent of the urban population.“

Now, the upper limit of 46 per cent rural and 28 per cent urban poor is itself gone! State Governments are free to declare even a whopping 75 per cent of their rural areas as being so poor that the subsidised rates envisaged for 5 per cent of the population in the year 2000 will now extend to them also, in the year 2013!

In this context, we need to talk about ‘visionary’ States like Andhra Pradesh. Please take a look at the image below. It talks about the boon to the poor – Rs 1/kg rice scheme. Apologies for the angle of the image. Nevertheless, I marked in red the important point in the hoarding, which when translated reads thus: “7.5 crore poor people will benefit”

The census of 2011 puts the population of AP at 8.46 crores. Doing some complicated math, we can conclude that the AP Government has classified a meagre 88.65 per cent of it’s population as ‘poor’. The Civil Supplies Minister also announced that about 25 lakh applications for a white ration card are pending. Because the Chief Minister does not want “anyone to sleep in hunger“, he reduced the cost of rice from a whopping Rs 2/kg to Rs 1/kg!

I sincerely apologise if my understanding is wrong, but shouldn’t any self-respecting Government do more to bring people out of poverty instead of pushing them into poverty? The National Food Security Bill mandates that the upper limit for the eligible households should be 75 per cent – what will a visionary State like Andhra Pradesh do now?

The NFSB also says that rice is to be provided at Rs 3/kg. But “visionary” States like Andhra Pradesh already provide it at Rs 1/kg! A topic for ‘Face The Nation’ – Is AP breaking the law?

Let’s now take a look at the provisions for the 75 per cent rural and 50 per cent urban poor.

“Every person belonging to priority households, identified under sub-section (1) of Section 10, shall be entitled to receive 5 kg of foodgrains per person per month at subsidised pricesspecified in Schedule I from the State Government”

For families under AAY:

“…entitled to thirty-five kilogrammes of foodgrains per household per month at the prices specified in Schedule I.”

What are the foodgrains that will be distributed? The Bill says thus:

“…foodgrains” means rice, wheat or coarse grains or any combination thereof conforming to such quality norms.”

Please note that the eligible quantity has been reduced from 7 kg in 2011 to 5 kg in 2013. But please also note that, that the 2013 bill does not talk about a split of the 75 per cent (the 2011 Bill says that a max of 75 per cent are eligible out of which 46 per cent are poor and the others belong to general households eligible for 3 kg per person). The 2013 Bill merely extends this courtesy to 75 per cent or rural and 50 per cent of the urban population!

But how much will people save?

Currently, various states (with the exception of “visionary” States like AP) give rice at Rs 3.50 – Rs 5.50 range to BPL families. Assuming a four-member family gets 15 kg of rice at Rs 3 instead of Rs 5.50, they are saving a whopping 15×2.50 = Rs 37.50 per month. Wheat is sold at Rs 7/kg in AP. Assuming that is the national average – there’s a further saving of 5×5 = Rs 25. A total of Rs 62.50 per month per family (4 members). Other combinations can yield savings upto Rs 90 per month per family (5 members).

Is our country in such dire straits that 75 per cent of our rural population and 50 per cent of urban population are thrilled at the prospect of saving about Rs 2 to Rs 3 per day? Is it is not a grave setback that we are actually encouraging them to entitlements like this and giving them false hope that this price will remain low for a long time? The Bill says that these rates cannot be changed for the next 3 years!

If the next Government even contemplates increasing the rates by Rs 1, imagine the furore that five-star activists will create. Oh and by the way, these five-star activists have eligibility to become members of the State Food Commissions because one of the eligibility criteria includes “a proven record of work relating to the improvement of the food and nutrition rights of the poor.”

The best part of the bill is yet to come!

“In case of non-supply of the entitled quantities of foodgrains or meals to entitled persons under Chapter II, such persons shall be entitled to receive such food security allowance from the concerned State Government to be paid to each person in such manner as may be prescribed by the Central Government.”

So there you go – these people will be paid money if they cannot be given foodgrains. And it has not yet been decided how much! Obviously, you can’t give them Rs 60 in lieu of the 15 kg rice and 1 kg wheat they are entitled to, because you will get zilch outside with that money. More importantly, the Central Government will decide how much funds the State Government will get to pay – thereby enabling Rahul Gandhi to go into Opposition-ruled States and say “Your state Government is not spending the money our Central Government is providing.”

The next small detail – Rs 1/kg for coarse grains.

“The average shelf life of coarse grains is limited, making them unsuitable for long-term storage and distribution under PDS. The inclusion of coarse cereals under PDS cannot be taken up as a national level programme since there is no standard variety of coarse grain. However, initiatives on part of State Governments catering to the needs of specific localities are possible.”

It is an observation made by the planning commission, in it’s 10th Five Year Plan (2002-2007). Just about 10 years ago, the Planning Commission observed that coarse grains cannot be distributed through PDS. But this is 2013, which means two other Five Year Plans have come up. Neither the 11th nor 12th Five Year Plans even talk about coarse grains!

The Food security Bill also provides for nutritional food for pregnant women and lactating mothers. Nutritional food to children from 6 months to 6 years, every day, free of charge; and mid-day meals at schools. Certain aspects of the Bill will definitely go a long way in fighting malnutrition among kids and that is precisely what laws have to aim for. Schemes have to reach those who are in actual need of it. This hare-brained one-size-fits-all approach will not work. It looks like the aim of Sonia Gandhi-led UPA is to keep people poor and thereby dependent on the Congress.

The Food security Bill also provides for nutritional food for pregnant women and lactating mothers. Nutritional food to children from 6 months to 6 years, every day, free of charge; and mid-day meals at schools. Certain aspects of the Bill will definitely go a long way in fighting malnutrition among kids and that is precisely what laws have to aim for. Schemes have to reach those who are in actual need of it. This hare-brained one-size-fits-all approach will not work. It looks like the aim of Sonia Gandhi-led UPA is to keep people poor and thereby dependent on the Congress.