distributional infrastructure for implementation of food security act
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PLANNINNG COLLIQUIAM, SPA, JNAFAU
DISTRIBUTIONAL INFRASTRUCTURE FOR IMPLEMENTATION OF FOOD
SECURITY ACT
PRESENTED BY:GROUP-610011BA009-HIMABINDU10011BA015-LAKSHMI PRASANNA10011BA018-MANISHANKAR10011BA026-PRASANNA LAXMI10011BA031-SATHISHWAR10011BA037-THARUN
UNDER THE GUIDENCE OF:MRS.PHANISREEMS.SHRUTHIDHAR
PLANNING COLLOQUIUM
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DEPARMENT OF URBAN & REGIONAL PLANNING
PLANNINNG COLLIQUIAM, SPA, JNAFAU 2
Overview It is to discuss on the importance of food security in the context of our nation and discuss about the distributional infrastructure which is the major contributor for the implementation of the act successfully.
The presentation is also intended to emphasize the infrastructural needs of the state with respect to the implementation of the food security act
PLANNINNG COLLIQUIAM, SPA, JNAFAU
What Is Food Security??
Food security is a situation that exists when all people, at all times, have
Physical, social and economic access to sufficient, safe and nutritious food to meet their dietary needs and food preferences for an active and healthy life.
Food security prevails if both food supply and demand are sufficient to cover food requirements on a continuous and stable basisFood insecurity prevails if, at any time(occasionally, repeatedly or permanently), food supply or demand fall short of requirements
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PLANNINNG COLLIQUIAM, SPA, JNAFAU
GLOBAL SCENARIO (Food and agricultural organisation(FAO))
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1/3rd of the world’s hungry live in India
836 million Indians survive on less than Rs.20 a day
Hunger remains the no.1 cause of deaths in the world
There are 820 million chronically hungry people in the world
PLANNINNG COLLIQUIAM, SPA, JNAFAU
Existing scenario in India India ranked 10th largest Economy of world on nominal GDP basis and 3rd largest on economy on PPP basis But India has………….. 29% of the 872.9 million undernourished people (FAO) 49% of the world’s underweight children (WHO) 34% of the world’s stunted children (WHO) Over 46% undernourished children (WHO) India is ranked 67 way below neighboring countries like China, Nepal & Pakistan in 2011 Global Hunger Index by the IFPRI.
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PLANNINNG COLLIQUIAM, SPA, JNAFAU
UNICEF studies reveal maximum under-nutrition in the five Indian states:
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Madhya Pradesh, Uttar Pradesh, Bihar, Rajasthan, and Orissa.
PLANNINNG COLLIQUIAM, SPA, JNAFAU
BACKGROUND TO FOOD SECURITY IN INDIA
In 2001, Jaipur it was observed that 5 kms outside the city, Food Corporation of India (FCI) godowns were overflowing with grains kept outside. Fermented by rain, it was rotting. 5 kms from the godowns was a village where the people were eating in rotation, classically called “rotation eating” where some members of the family eat on one day and the remaining persons eat on the other day. In 2001, 60 million tonnes were in FCI godowns, whereas buffer stock required were 20 million tonnes. The Government had 40 million tonnes above the buffer stock and people were dying of starvation. On that simple proposition the PUCL in Rajasthan filed a case, which came to the Supreme Court.
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PLANNINNG COLLIQUIAM, SPA, JNAFAU
Contd…
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The Supreme Court Case (April 16, 2001) - People Union for Civil Liberties(Rajasthan) submitted a “writ petition”:Starvation deaths becoming National Phenomenon while there is surplus stock of food grains in government godowns.Does right to life mean that people who are starving are too poor to buy food grains free of cost by State from the surplus stock lying with the State particularly when it is lying unused and rotting? Does the right to life under Article 21 of the Constitution of India include the right to food? Does the right to food which has been upheld by the apex Court imply that the State has a duty to provide food especially in situations of drought to people who are drought effected and are not in a position to purchase food?
PLANNINNG COLLIQUIAM, SPA, JNAFAU
FOOD SECURITY NORMS IN INDIA
Court affirms the right to food as necessary to uphold Article 21 of the Constitution of India, which guarantees the fundamental right to “life with human dignity”•Closed PDS shops to be re-opened within one week•Food Corporation of India (FCI) was ordered to prevent wastage•States given the responsibility over implementation of schemes
Employment Assurance SchemeMid-day Meal SchemeIntegrated Child Development SchemeNational Benefit Maternity Scheme for BPL pregnant womenNational Old Age Pension Scheme - destitute persons over 65 yearsAnnapurna SchemeAntyodaya Anna YojanaNational Family Benefit Scheme Public Distribution Scheme for BPL & APL families 9
PLANNINNG COLLIQUIAM, SPA, JNAFAU
PROGRESS SO FAR2001: Constitutional Court recognizes right to food in the People’s Union for Civil Liberties (PUCL) case, transforming policy choices
into enforceable rights
2005 : Adopts its National Rural Employment Guarantee Act and the
Right to Information Act
2009: India is developing a National
Food Security Act
2011: Food Security Bill cleared by Cabinet January, 2013: NFSB
cleared by a parliamentary committee
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PLANNINNG COLLIQUIAM, SPA, JNAFAU
Main features of food security actThe work of identification of eligible households has been left to the states.Pregnant women and lactating mothers entitled to nutritious meals and maternity benefit of at least Rs.6,000 for six months.The central government will provide funds to states in case of short supply of food grain.The current food grain allocation of the states will be protected by the central government.The state governments will provide food security allowance to the beneficiaries in case of non-supply of food grain.Public distribution system to be reformed.The eldest woman in the household, 18 years or above, will be the head of the household for the issue of the ration card.There will be state and district level redress mechanisms.
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PLANNINNG COLLIQUIAM, SPA, JNAFAU
PHYSICAL AVAILABILITY OF FOOD
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Crop 2011-12 2012-13
Rice 105.31 104.22
Wheat 94.88 93.62
Coarse cereals 42.04 39.52
Total cereals 242.23 237.3618
Pulses 17.09 18.00Total food grains 259.32 255.36
Oilseeds 29.79 30.72Sugar 24.60 26.00Vegetables 156.325 156.445
Fruits 76.42 79.40
Milk 127.9 133.7
Source:-RBI Hand Book on India Economy 2011-12
PLANNINNG COLLIQUIAM, SPA, JNAFAU
PERCAPITA AVAILABILITY 2012-13
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Commodity Per capita availability Minimum per capita requirement
Total cereals 528.70 400
Pulses 46.78 80
Total food grains 568.79 480
Oil 39.73 30
Sugar 54.79 20
Vegetables 348.47 300
Fruits 176.86 150
Milk 297.81 300
Source:-National Institute of Nutrition, Hyderabad
PLANNINNG COLLIQUIAM, SPA, JNAFAU
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Annual food grain requirement for implementing the NFSA is estimated at 610LMT
Out of this proposed 61 million tonnes of food grains, our 8.24 crore of targeted people
require only 494.4LMT and rest shall be for other institutional arrangements.
In year 2011-12 FCI procured 663.5 LMT of Food grains
and off take was 562.8LMT.
The stock at the end of the period was 534.4LMT.
610LMT can be met easily.
Contd…
“70% of rice & 80% wheat is procured from Punjab, AP,
Chhattisgarh, UP, Haryana & MP.
This requires huge funds to erect infrastructure, man
power and transport.
Expected Cost of transport, leakage is up to 40.4 % of
the production cost.
It is alleged that Rs 2,07,000 cr is siphoned by
middlemen and rats destroy 35% food stuff.Source: CAG
PLANNINNG COLLIQUIAM, SPA, JNAFAU
The total loss of food grains, as a result, in the last three years and in the first
quarter of the current financial year accounted for Rs 2,030.90 crore.
The government needs to strengthen back-end infrastructure before
implementing the food security law in the country.
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PLANNINNG COLLIQUIAM, SPA, JNAFAU
India’s Food Security System
Buffer Stock
Public Distribution System
Food Security
System of India
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PLANNINNG COLLIQUIAM, SPA, JNAFAU
How the Public Distribution System works:
Farmers or Producers
States
Fair Price Shops
F.C.I (maintains
Buffer Stocks)
Grains MSP
Allocates Grains
Central Issue Price
C.I.P Distributes Grains
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PLANNINNG COLLIQUIAM, SPA, JNAFAU 18
OVERVIEW OF DISTRIBUTIONFCI
PROCURES GRAINS FROM FARMERS
STATE CIVIL SUPPLIES LIFTS GRAINS FROM FCI AS PER THE
ALLOTMENTWAREHOUSE CORPORATION PROVIDES GODOWNS
PLANNINNG COLLIQUIAM, SPA, JNAFAU
PROCUREMENTFor the year 2011-2012Procurement-633.36Allocation-709Offtake-563Requirement for
2012-2013 is 615LMT2013-2014 is 625LMT2014-2015 is 634LMT2015-2016 is 644LMT2016-2017 is 654LMT
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Procurement details:FCI-9%Npn DCP-45%DCP-25%Pvt millers-22%Food subsidy by GOI:2011-2012: FCI-59,525 State’s-14,845
STORAGE MANAGEMENT2011-12 Storage Capacity LMT
FCI 156.40
CWC 100.89
SWC 234.61
Total 491.86
2011-12 In LMT
Procurement(paddy and wheat) 633.36
Storage capacity 491.86
Gap 141.5
Open storage(outside of Godowns) 87.86
87.86 LMT is lying outside the godowns
PLANNINNG COLLIQUIAM, SPA, JNAFAU
Andhra Pradesh GOI has informed the AP state govt it would only provide food security to
60.98% of poor people in rural areas and 41.14% of poor people in urban areas in AP, largely due to the disparity in calculation of the poor in the state.
Our state reported a huge drop in poverty statistics released by the National Statistics Organisation (NSO),“
"The Planning Commission also said there was a 20% drop in poverty in Andhra Pradesh by 2012.“While the NSO figures put poverty levels in the state at 9.2% the civil supplies department says more than 95% of the population of Andhra Pradesh is not in a position to buy food grains in the open market, without officially certifying them as those living Below Poverty Line (BPL).
According to state civil supplies department:Total households: 2.08 croreTotal ration cards for BPL: 2.01 crTotal beneficiaries: (cards*avg household)=8.04 cr
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PLANNINNG COLLIQUIAM, SPA, JNAFAU
Civil supplies corporation
At present the state supplies 4 kg rice per person per monthRs. 1 per kg. But when the Food Security Bill comes into play, it would have to supply 5 kg to every person each month, that too at Rs 3 per kg.Under the Food Security Bill,
35 kg of rice at Rs 3 per kg for 8.05 crore population, Centre will supply food grains to only 4.56 crore population,
The state has to spend an additional Rs 2,500 crore to implement the Food Security Act in Andhra Pradeshsince it has to supply rice to an additional 3.4 crore people, if they go by their calculations.
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PLANNINNG COLLIQUIAM, SPA, JNAFAU
GOI
FOOD CORPORATION OF INDIA
GoAp PROCUREMENT FROM FARMERS, MILLERS at MSP.
APSCSCL
MLS POINTS
Fair price shops
FCI GODOWNS
Consumer
STATE GODOWNS
STRUCTURAL FRAMEWORK OF THE FCI & CIVIL SUPPLIES
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PLANNINNG COLLIQUIAM, SPA, JNAFAU
TRANSPORTATION
Stage I• The transportation of stocks from
FCI/Factories to MLS Points is called Stage-I transportation
• which is being undertaken through the District-wise Transport Contractors appointed separately for food-grains(PPP modes )
Stage II• The transportation from MLS Point to the
door step of the F.P. Shop Dealer is called Stage-II transportation
• which is being undertaken through Corporation Vehicles and Stage-II contractors appointed by the Collectors on approval of the rates by Head Office(PPP modes)
• In some Districts, direct lifting of food-grains is also being undertaken from certain FCI godowns to FP Shops within a radius of 25 KMs. by avoiding Stage-I transportation and handling charges.
• In Metropolitan areas of Twin Cities, rationed area of Ranga Reddy District, Vijayawada and Visakhapatnam, FP Shop Dealers themselves are directly lifting the stocks from MLS Points.
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Andhra Pradesh State Civil Supplies Corporation Ltd. is the responsibility of the Corporation to undertake transportation, storage and delivery of the stocks under PDS at the door steps of the Fair Price Shop Dealers.
PLANNINNG COLLIQUIAM, SPA, JNAFAU 24
ANALYSIS ON STORAGE SPACE
Existing godown space of MLS point: 3.20 LMTAdditional hired space for storage: 3.04 LMTTotal space available: 6.24 LMTAdditional amount of space required for storage for allotments of food security act: 1.50 LMTDistrict level space estimated : 6521 MTPer district an average of 6000 MT storage space has to be created in order to address the implementation of food security act successfully
PLANNINNG COLLIQUIAM, SPA, JNAFAU 25
OBSERVATIONS• Addition of nine items at affordable prizes by the govt of AP is a
positive move.• The no. of bogus cards in Andhra Pradesh are too high because of
which 95% of population is projected to be BPL.• Measure of Strengthening of food advisory committees.• MSP is given to the farmers with a prompt payment within 3 days.• 10 districts have decentralised procurements.
PLANNINNG COLLIQUIAM, SPA, JNAFAU 26
By computerizing paddy procurement under PDS, the Government of Chhattisgarh Enhance transparency in operations to mitigate leakages and diversion of funds Improve the delivery mechanism so PDS commodities reach the target population Involve citizens in the monitoring process to enhance accountability
The project has Digitised 1532 paddy procurement centres 50 storage centres of Marketing Federation (MARKFED) 100 Civil Supplies Corporation distribution centres 35 FCI rice receiving centres. Five servers are maintained at the National Informatics Centre (NIC),
Chhattisgarh State Centre for hosting all concerned applications and
managing the entire database.
ProcurementCHHATTISGARH MODEL
PLANNINNG COLLIQUIAM, SPA, JNAFAU 27
Computerization of Fair Prices Shops (FPS) .
“Doorstep delivery” was started wherein GPS-enabled transport
vehicles .
Mobile based applications including SMS alerts for about food grains
lifted from godowns and their delivery at ration shops.
Information pertaining to beneficiaries was made public.
Painting houses with color codes signifying kind of cards held
The list of BPL households was displayed at Panchayath offices too.
centralized monitoring and grievance redressal mechanism in the form
of a functioning helpline and access to information regarding PDS.
PDS in CHHATTISGARH
PLANNINNG COLLIQUIAM, SPA, JNAFAU 28
SERVERCentralized food department server
STEP 3: Chip enabled ration card When swiped into a point device, all details of a beneficiary.Handouts a receipt .
STEP 4:DESTINATION
consumer
STEP 1:Food being loaded lorries Lories are painted with bright yellow so that they could be easily loaded .
STEP 2:Fair price shops use GPRS credit card swipe machine.Receipt Chargeable device is used if connectivity is temporarily un available
PLANNINNG COLLIQUIAM, SPA, JNAFAU
COMPARISON BETWEEN CHHATTISGARH FOOD SECURITY & NFSB
Chhattisgarh food security 2012 National food security bill 2013
Food grain entitlementsAntyodaya and prority (per households)General
35 kg food grain at Rs 1 & 2/Kg
2 kg iodized salt2 kg black gram at Rs 5/kg(tribal)2 kg pulses at Rs 10/ kg(tribal)15 kg food grain at RS 15/kg
5 kg per person per month
35 kg food grain per householdNo provision of noon food grain item
Type of entitelments
Only on household basis Antyodaya only on household basisAll others on per person basis
Antyodaya Include vulnerable group Only poorest of poor
Destitutes and homeless
Free meal No provision
PDS reform Use IT and SMS services Deliver to doorstep of PDS. No IT services yet announced
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Comparison to Chhattisgarh to National food security
PLANNINNG COLLIQUIAM, SPA, JNAFAU
CASE STUDY OF HYDERABAD
The AP CIVIL SUPPLIES CORPORATION has classified the
Hyderabad into 9 circles and it has got 9 godowns respectively.oCIRCLE1. L.B.NAGARoCIRCLE2. BANDLAGUDAoCIRCLE3. BAHADURPURAoCIRCLE4. VSToCIRCLE5. LANGARHOUSEoCIRCLE6. VSToCIRCLE7. SANATHNAGARoCIRCLE8. MUSHEERABAD
oCIRCLE9. MUSHEERABAD There are 2 FCI godowns at Charlapalley & Sanathnagar
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PLANNINNG COLLIQUIAM, SPA, JNAFAU 31
OBSERVATIONS
Addition of nine items at affordable prizes by the govt of AP is a positive move
The no. of bogus cards in andhra pradesh are too high because of which 95% of population is projected to be BPL
Measure of Strengthening of food advisory committes MSP is given to the farmers with a prompt payment within 3 days 10 districts have decentralised procurements
PLANNINNG COLLIQUIAM, SPA, JNAFAU
CASE STUDY OF HYDERABAD
The AP CIVIL SUPPLIES CORPORATION has classified the Hyderabad into 9 circles and it has got 9 godowns
respectively.CIRCLE1. L.B.NAGARCIRCLE2. BANDLAGUDACIRCLE3. BAHADURPURACIRCLE4. VSTCIRCLE5. LANGARHOUSECIRCLE6. VSTCIRCLE7. SANATHNAGARCIRCLE8. MUSHEERABADCIRCLE9. MUSHEERABAD
There are 2 FCI godowns at Charlapalley & Sanathnagar
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PLANNINNG COLLIQUIAM, SPA, JNAFAU
CIRCLE-8 SCENARIO
There are 108 rationshops under circle-8 musheerabadThere are a total of 70,275 benefeciariesThe capacity of the godown is 120 MtsThe godown runs efficiently on the rotational basisBut an additional allocation of even 20 Mts could impact the functioning of the godown badlyRent: 88,000 per month
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PLANNINNG COLLIQUIAM, SPA, JNAFAU
CIRCLE-4
THE GODOWN CAPACITY- 75MTSCONDITION: POOR(Proposal for reconstruction of the nizam’s reign storage godown )No aeration to the godown which can spoil the stockThere is a loss of stock due to damages and improper maintenance of the godown
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PLANNINNG COLLIQUIAM, SPA, JNAFAU 35
OBSERVATIONS
The existing godowns are serving the PDS but not at a perfect paceLack of sufficient staff at the godownsLess no. of hamalies (6- 10 hamalies per godown)Lack of facilities to the staff as well as hamaliesNo proper fire systemsNo proper ventilation and aeration to the godowns
PLANNINNG COLLIQUIAM, SPA, JNAFAU
Few practical suggestions for effective implementation of Food Security bill….
A way forward….36
• Construction of scientific warehouses
• Truck tracking systems
• Efficient rotation + Additional storage facilities
• SMS alerts• Fire safety systems• Vigilance rotation • Regulations and law
to be strengthened
PLANNINNG COLLIQUIAM, SPA, JNAFAU
Construction of Scientific Warehousing and Logistics Parks
Modern scientific warehouses and multi-modal Logistic parks will have to be developed by the government . These Warehouses and Logistic Parks will need to be connected by Rail, Road, Waterways and Air. Lot of planning and design will need to be done, keeping in mind the future storage and connectivity requirement.Green warehouses will need to be built which will consume very little electricity for internal lighting and air circulation. Existing facilities up-gradation will need to be undertaken to get more out of the existing setupa. Optimal space utilization, movement of units within the warehouses and parks, parking and dispatch bays setup, super flat flooring for vertical space utilization. Assigning space for different warehouse activities, warehouse safety etc. will require intrinsic planning.
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PLANNINNG COLLIQUIAM, SPA, JNAFAU
??????????????
Will the PDS serve up to the mark or will there be an alternative for PDS i.e., can we propose any PPP models??Will the government be able to invest in scientific warehouse construction??Can the govt hire vehicles for the distribution system instead of contractors??Can the Indian railways meet the demand of rail rakes for Inter and Intra state transportation??What criteria is to be chosen for issuing of food grains under Food Security Act??
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PLANNINNG COLLIQUIAM, SPA, JNAFAU
“There are people in the world so hungry, that God cannot appear to them except in the form of bread.”Mahatma Gandhi (1869-1948)
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