Food minister KV Thomas, who introduced the bill in the Lok Sabha amid thumping of desks by Congress members led by party president Sonia Gandhi, said that it would ensure that all Indians "live a life with dignity". The bill marks a shift in approach to the problem of food security - from the current welfare paradigm to a rights-based approach. The proposed legislation confers eligible beneficiaries the legal right to receive grain at highly subsidised prices.
The National Food Security Bill, 2011, considered to be the world's largest experiment in ensuring food security to poor, has been a key project of Congress president Sonia Gandhi. The bill brings under its purview 63.5% of the country's population -75% of rural households and 50% of urban households.
The bill classifies all entitled households as "general" and "priority".
At least 46% of rural households and 28% of urban households would be designated as "priority". Every person belonging to a "priority household" will be provided with 7kg of grain per month, comprising rice, wheat and coarse grain. Rice will be provided at Rs 3, wheat at Rs 2 and coarse grain at Rs 1 per kg. Others belonging to the "general category" would be entitled to not less than 3kg of grain per month at a rate not exceeding 50% of the minimum support price.
Once passed, the food subsidy bill is expected to rise to Rs 95,000 crore. Initial estimates pegged the increase in subsidy at nearly Rs 28,000 crore. However, on Thursday, the government made a downward revision of the additional burden on the central government - between R 21,000 crore to R 23,000 crore.
The bill's financial memorandum estimates the total annual expenditure on food subsidy under the targeted public distribution system at about Rs 79,800 crore. "The estimate of food subsidy is however dependent, among other things, upon economic cost, central issue of price of grain, number of beneficiaries covered and quantities of grain allocated and lifted, and therefore subject to change with changes in any or all of the variables affecting food subsidy," the memorandum states.
Experts maintain that the annual increase would be to the tune of Rs 27,500 crore. However, Thomas said "an additional amount of not more than about Rs 20,000-21,000 crore annually would be required by way of subsidy." The minister argued since the food bill merges many ongoing programmes meant for women, children and the poor, there would be no additional financial burden.
The total financial liability to implement the law is expected to be Rs 3.5 lakh crore, with funds being required to raise agriculture production, create storage space and publicity. A sum of roughly Rs 1,11,000 crore would be required to boost farm output with grain requirement increasing, on account of this intervention, from 55 million tonne to 61 million tonne annually. Thomas stressed that "this Rs 1,10,600 crore is not an additional burden. We need to invest in agriculture to boost production anyway".
Souce: Economic Times
The National Food Security Bill, 2011, considered to be the world's largest experiment in ensuring food security to poor, has been a key project of Congress president Sonia Gandhi. The bill brings under its purview 63.5% of the country's population -75% of rural households and 50% of urban households.
The bill classifies all entitled households as "general" and "priority".
At least 46% of rural households and 28% of urban households would be designated as "priority". Every person belonging to a "priority household" will be provided with 7kg of grain per month, comprising rice, wheat and coarse grain. Rice will be provided at Rs 3, wheat at Rs 2 and coarse grain at Rs 1 per kg. Others belonging to the "general category" would be entitled to not less than 3kg of grain per month at a rate not exceeding 50% of the minimum support price.
Once passed, the food subsidy bill is expected to rise to Rs 95,000 crore. Initial estimates pegged the increase in subsidy at nearly Rs 28,000 crore. However, on Thursday, the government made a downward revision of the additional burden on the central government - between R 21,000 crore to R 23,000 crore.
The bill's financial memorandum estimates the total annual expenditure on food subsidy under the targeted public distribution system at about Rs 79,800 crore. "The estimate of food subsidy is however dependent, among other things, upon economic cost, central issue of price of grain, number of beneficiaries covered and quantities of grain allocated and lifted, and therefore subject to change with changes in any or all of the variables affecting food subsidy," the memorandum states.
Experts maintain that the annual increase would be to the tune of Rs 27,500 crore. However, Thomas said "an additional amount of not more than about Rs 20,000-21,000 crore annually would be required by way of subsidy." The minister argued since the food bill merges many ongoing programmes meant for women, children and the poor, there would be no additional financial burden.
The total financial liability to implement the law is expected to be Rs 3.5 lakh crore, with funds being required to raise agriculture production, create storage space and publicity. A sum of roughly Rs 1,11,000 crore would be required to boost farm output with grain requirement increasing, on account of this intervention, from 55 million tonne to 61 million tonne annually. Thomas stressed that "this Rs 1,10,600 crore is not an additional burden. We need to invest in agriculture to boost production anyway".
Souce: Economic Times
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