gourav - seminar report on food security in india_myths and realities - with pssm edit (2).doc

8/14/2019 Gourav - Seminar report on Food Security in India_Myths and Realities - with PSSM edit (2).doc

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DEPARTMENT OF AGRICULTURAL

ECONOMICS,

UNIVERSITY OF AGRICULTURAL SCIENCES,GKVK, BENGALURU - 560065

Semina Re!"#

On

F""$ Se%&i#' in In$ia( M'#)* an$ Rea+i#ie*

S&mi##e$ '(

G"&a K&ma Vani

PALB ./0

S1 M1 S%1 2A3i14

Semina N"1 -/

Submitted to:

D1 G1 S1 Ma)a$eaia)

S)i "nnaia)

Semina Tea%)e*


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.

TABLE OF CONTENT

Serial no. Particulars Page no.1 Introduction to Food Security 4

2 Physical Availability of Food 4-8

3 Per caita !onsu"tion #$enditure on different

food ite"s for 3% days duration& All India& 2%11-

2%12

'

4 #ngle(s )a* + ,rends in !onsu"tion

#$enditure

1%-12

!onsu"tion of !ereals and Pulses 12-1

Ine/uality in !onsu"tion 1-10 #lasticities of Food #$enditure by co""odity 1

8 Star ealities 10

' Perfor"ance on lobal unger Inde$ 10-18

1% 5e"and + Suly ro6ections for Foodgrains 18-1'

11 overn"ent 7easures for Food Security 1'-2%

12 ational Food Security Act 2%13 21-23

13 !onclusion 24

14 Policy I"lication 24

1 eferences 2-2


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LIST OF TABLES

,able o. ,itle Page o.

1 Physical Availability of Food 4

2 et Availability of !ereals and Pulses

3 Per caita Availability 2%12-13 0

4 Per caita et Availability er day 8

Per caita !onsu"tion #$enditure on

different ite"s for 3% days duration for All India

2%11-12

'

,rends in Percentage !onsu"tion #$enditure

since 1''3-'4 for rural India

1%

0 ,rends in Percentage !onsu"tion of

!onsu"er #$enditure Since 1''3-'4 for urbanIndia

1%

8 ro*th in Inco"e and Inflation 11

' All India Per !aita consu"tion 9:g; of

!ereals and Pulses for 3% days duration for each

decile class of 7P!# All India

14

12 !hange in er aita cereal consu"tion 9:g; in

different 7P!# fractile classes> All India

1

13 Ine/uality in consu"tion across states of India 1

14 )oren? ratios for rural and urban sectors of

India

1

1 #sti"ated #lasticities of Food #$enditure by

!o""odity

1

1 Perfor"ance on lobal unger Inde$ 10

10 Pro6ected Scenario of 2%2%2 18

18 Perfor"ance of FS7 2%

1' ro*th of Agricultural and allied 5P 2%

2% !ost of ,ransferring one ruee 21

21 !ost of food subsidy 22


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/1 In#"$&%#i"n #" F""$ Se%&i#'

According to @orld Food Su""it& o"e& 1''& Food Security e$ists& *hen all eole&

at all ti"es& have hysical and econo"ic access to sufficient& safe and nutritious food to

"eet their dietary needs and food reference for an active and healthy life.

F"& $imen*i"n* "7 F""$ Se%&i#'

Physical Availability of Food > ,his di"ension considers suly side&

deter"ined by the level of food roduction& stoc level + net trade.

#cono"ic + Physical access to Food> Ade/uate suly of food does not

guarantee household level food security. Food access deends on inco"es&

e$enditure& "arets + rices in achieving food security ob6ectives.

Food ,his di"ension considers the *ay the body "aes the "ost of

various nutrients in the food. It involves care + feeding ractices& food

rearation and diversity of diet + intra-household distribution of food. Stability of the other 3 di"ensions over ti"e> ,his di"ension includes access on

a eriodic basis. @eather& olitical conditions or econo"ic factors also have an

i"act on food security status.

.1 P)'*i%a+ Aai+ai+i#' "7 F""$

Physical availability of food can be understood in various *ays as follo*ing.

,otal Production of Food !o""odities> ,able o. 1 rovides the roduction of

food grains& oilseed& sugar& fruits and vegetables and "il for India.

,able o. 1> Physical Availability of Food 9"illion tonnes;

!ro 2%11-12 2%12-13

ice 1%.31 1%4.22

@heat '4.88 '3.2

!oarse cereals 42.%4 3'.2

,otal cereals 242.23 230.318

Pulses 10.%' 18.%%

,otal food grains 2'.32 2.3

ilseeds 2'.0' 3%.02

Sugar 24.% 2.%%

Begetables 1.32 1.44

Fruits 0.42 0'.4%

7il 120.' 133.0

Source>-1. CI and Coo on Indian #cono"y 2%11-12.


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5

2. Statistical Dear Coo& 2%13& ublished by 7inistry of Statistics and Progra""e

I"le"entation& I& e* 5elhi.

Fro" the table it can be observed that roduction of cereal and coarse cereals has

declined "arginally fro" 2%11-12 to 2%12-13. Cut in case of Pulses& ilseeds& Sugar&

Fruits and 7il there is good 6u" in the roduction co"ared to revious year.verall '-1% grain roduction has declined due to ill distribution of rainfall in year

2%11 and sace in the country.Fro" the figure 1& it can be seen that over years& roduction of rice&

*heat& coarse cereals and ulses has increased and reached a record level in

2%11 for *heat& rice and coarse grains.

Fi3&e /( Ten$ in P"$&%#i"n "7 F""$ 3ain*

Source:and boo of Indian #cono"y& CI& 2%11-12.

et Availability of !ereals and Pulses > et availability is an i"ortant concet

to loo at availability in the do"estic "aret for co""odities after taing intoaccount the effect of net i"ort or e$ort and changes in level of overn"ent

Stocs. ,he for"ula for calculating net availability is as follo*ing

Ne# aai+ai+i#' "7 %eea+*8Ne# !"$&%#i"n 9ne# im!"#*-%)an3e* in 3"enmen#

*#"%: "7 %eea+*

It is i"ortant to consider the net availability of cereals and ulses because

!ereals and Pulses are the "ain source of carbohydrates and rotein. ence !ereals

and Pulses are the building blocs of Food Security. overn"ent "aintains the stoc of

!ereals as *ell as e$ort + i"ort the !ereals and Pulses based on the roduction in

the resective year.


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6

Fro" the table no. 2 rovided belo*& it can be observed that over years the net

availability of !ereals had i"roved but for Pulses it *as d*indling in India. ,he

highest availability *as observed in the year 2%%8-%' of 10. "illion tonnes. Cut over

the three years in 2%1%-11 the net availability declined to a level of 2%%-%0. It can also

be observed that& overn"ent Interventions and oening u of #cono"y heled the

#cono"y in increasing net availability of !ereals and Pulses by big "argin in threedecades fro" 1'8%-81 to 2%%%-%1.

,able o. 2> et Availability of !ereals and Pulses 9 "illion tonnes;

Dear !ereal Pulses

1'%-1 44.3 8.%

1'%-1 4. 11.1

1'0%-01 84.% 1%.3

1'8%-81 1%4.8 '.4

1''%-'1 14.0 12.'

2%%%-%1 14. 11.3

2%%-% 10.4 12.0

2%%-%0 18.8 13.3

2%%0-%8 18.' 14.0

2%%8-%' 1.' 10.

2%%'-1% 103.0 1.8

2%1%-11 10. 13.0

Source> Indian #cono"y& aurav 5att and Ash*ani 7aha6an& 2%13.

Per !aita availability> ,he Production of co""odities does not al*ays tell us

about the sufficiency of co""odity(s availability in /uestion. ence a good

"easure can be to co"are the er caita availability of co""odities *ith the

"ini"u" re/uire"ents. ,able no. 3 as given belo* rovides us *ith a list of

er caita availability er day and er caita "ini"u" re/uire"ent er day for

various food ite"s for India for eriod 2%12-13. Fro" the table it can beobserved that *e have surlus a"ount of cereals& Sugar& Begetables and Fruits

co"ared to "ini"u" re/uire"ent. Cut for ulses *e have % E deficit in er

caita availability. In case of oil *e have "ore availability than the re/uire"ent

but half of the availability is "et through the i"ort of vegetable oil. In case of

"il *e are on the ath of achieving self sufficiency in er caita availability

and *e fall "arginally short of the er caita daily re/uire"ent.


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;

,able o. 3> Per caita availability& 2%12-13 9in gra" er day;

!o""odity Per caita availability 7ini"u" er caita re/uire"entG

,otal cereals 28.0% 4%%

Pulses 4.08 8%

,otal food grains 8.0' 48%

il 3'.03 3%

Sugar 4.0' 2%

Begetables 348.40 3%%

Fruits 10.8 1%

7il 2'0.81 3%%

GSource:- , Dietary Guidelines for Indians: A manual,2011, ublished by ational

Institute of utrition& I!7& yderabad> . !alculated by the resenter

Fro" the figure 2& it can be observed that er caita availability of ulses over

years after 1'%-1 eriod is declining consistently. @hile for cereals and food grains&

it is consistently increasing over years.

Figure 2> Per !aita Availability 9in gra"s er day ;

Source:Policy brief on de"and for food grains during 2%2%& 2%%'& !AP& e* 5elhi.

Per c aita et Availability > Per caita availability is calculated by dividing the totalroduction by total oulation and hence it fails to reflect the effect of changes in


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Per caita !onsu"tion #$enditure on different ite"s for 3% days

duration& All India& 2%11 - 2%12

Source:-:ey indicators of household consu"er e$enditure in India& SS

reort for 8thround survey 92%11-12;.

Ite" grou A"ount 9s.;

ural


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1 En3e+?* La@ Ten$* in C"n*&m!#i"n E>!en$i#&e

,able no. and 0 are rovided belo* for trends in ercentage co"osition of consu"er

e$enditure for rural and urban areas resectively for eriod 1''3-'4. Fro" table no.

it can be observed that in rural areas& ercentage of consu"tion e$enditure on all

ite"s of food e$cet "il had decreased over years. ,otal food e$enditure haddecreased over years but total non food e$enditure had increased over years& *hich is

in confor"ity *ith #ngel(s la* of consu"tion e$enditure.

,able o.> ,rends in Percentage !o"osition of !onsu"er #$enditure since

1''3-'4 for ural India

Ite" grou 1''3-'4 1'''-2%%% 2%%%4-% 2%%'-1% 2%11-12

!ereal 24.2 22.2 18.% 1. 12.%

Pulse and their roducts 3.8 3.8 3.1 3.0 3.1

7il and "il roducts '. 8.8 8. 8. '.1

#dible oil 4.4 3.0 4. 3.0 3.8

#gg& fish& "eat 3.3 3.3 3.3 3. 3.

Begetables .% .2 .1 .2 4.8

Fruits and nuts 1.0 1.0 1.' 1. 1.'

Food total 3.2 '.4 .% 3. 48.

on food total 3.8 4%. 4.% 4.4 1.4

Source:-Ke' in$i%a#"* "7 )"&*e)"+$ %"n*&me e>!en$i#&e in In$ia, NSSO e!"# 7"6!en$i#&e *in%e /==-=7" Uan In$ia

Ite" grou 1''3-'4 1'''-2%%% 2%%%4-% 2%%'-1% 2%11-12

!ereal 14.% 12.4 1%.1 '.1 0.3

Pulse and their roducts 3.% 2.8 2.1 2.0 2.1

7il and "il roducts '.8 8.0 0.' 0.8 0.8

#dible oil 4.4 3.1 3. 2. 2.0

#gg& fish& "eat 3.4 3.1 2.0 2.0 2.8

Begetables . .1 4. 4.3 3.4

Fruits and nuts 2.0 2.4 2.2 2.1 2.3

Food total 4.0 48.1 42. 4%.0 38.

on food total 4.3 1.' 0. '.3 1.


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//

Source:-Ke' in$i%a#"* "7 )"&*e)"+$ %"n*&me e>!en$i#&e in In$ia, NSSO e!"# 7"

6


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/.

4. Statistical Dear Coo& 2%13& ublished by 7inistry of Statistics and

Progra""e I"le"entation& I& e* 5elhi.

It can be observed that gro*th of P!I in rural India *as far lo*er co"ared to their

urban counterarts. ro*th in inco"e 9P!I; in rural areas *as far lo*er co"ared to

gro*th of inflation 9both eneral and Food; gro*th in rural areas for both eriods.@hile in case of urban areas the inco"e gro*th *as "ore than gro*th of inflation

9both eneral and Food; for both eriods. For eriod 2%%4-% to 2%11-12 at Pan India

scenario& gro*th of inco"e had surassed gro*th of inflation but for eriod 1''3-'4

reverse *as true. ,hus real inco"e of rural eole had reduced over ti"e *hile for

urban areas real inco"e had increased over ti"e. ,his led to disarity in econo"ic

access and consu"tion in rural and urban areas as *ell as it "aes the oor "ore

vulnerable fro" the vie* oint of Food security.

51 C"n*&m!#i"n "7 Ceea+* an$ P&+*e*

,able no. ' rovided belo* gives us the er caita consu"tion of cereals and ulses

for each decile class of 7P!#


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/

Source>-SS reort no. 38> level and attern of consu"tion e$enditureIn case of urban areas the last three decile classes had the cereal consu"tion

belo* All India average cereal consu"tion. 7ini"u" re/uire"ent of cereal er

erson er "onth is 12 g. #$cet 'thand 1%thdecile classes of rural areas& no other

class of both rural and urban areas had ade/uate cereal consu"tion. 7ini"u"

re/uire"ent of ulse er erson er "onth is 1.8 g and consu"tion of ulse *as

inade/uate in all the decile classes of both rural and urban areas. ,hus it is clearly

evident fro" the table that lo*er 7P!# classes are severely food insecure because

there does not have e$istence of otion of sule"enting this inade/uate cereal and

ulse consu"tion *ith highly nutritious foods lie "eat and fish due to lo*

urchasing o*er but the reverse holds good for decile classes *ith high 7P!#.

&an#i#' "7 %eea+ %"n*&me$ !e !e*"n !e m"n#) an$ *)ae "7 i%e an$ @)ea#

in %eea+ %"n*&m!#i"n 7" ma" *#a#e*, .00=-/0

,o no* the attern of consu"tion of cereals across states table no. 1% is rovided

belo*.

,able o.1%> =uantity of cereal consu"ed er erson er "onth and E share of riceand *heat in cereal consu"tion in 2%%'-1%& "a6or states

5ecile classes ural 9:g.;


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Source(-NSSO e!"# n"1 5


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/5

classes here are the division of 7P!# into different grous *here %-1% fractile class

refers to the lo*est class of "onthly consu"tion e$enditure *hile '%-1%% fractile

class refers to the highest class of "onthly consu"tion e$enditure. It can be observed

that over years consu"tion of cereals is decreasing. !onsu"tion of cereals increases

for all years as one "ove fro" lo*est fractile class of 7P!# to highest class of 7P!#.

,his sho*s that inco"e has ositive relation *ith cereal consu"tion.

,able o. 11> !hanges in Per !aita !ereal !onsu"tion 9g.; in rural areas in

different 7P!# fractile classes> All-India

Source:-SS reort no. 38> level and attern of consu"tion e$enditure.

,able no. 12 rovides us trends in consu"tion of cereals across the different

e$enditure class for urban areas. It can be observed fro" the table that as *e "ovefro" lo*est 7P!# fractile class to highest fractile class& cereal consu"tion is

decreasing. ,his indicates that cereal consu"tion is negatively related to 7P!#. ver

years cereal consu"tion has decreased. ver years difference in consu"tion of

different fractile class has reduced.

,able o.12> !hanges in Per !aita !ereal !onsu"tion 9g; in urban areas in

different 7P!# fractile classes> All-India

Source:-SS reort no. 38> level and attern of consu"tion e$enditure.


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61 Ine&a+i#' in C"n*&m!#i"n a%"** S#a#e* "7 In$ia

In table no. 13 ine/uality in consu"tion is "easured through use of )oren? ratio

*hich ranges fro" % to 1& % for erfect e/uality and 1 for erfect e/uality. )oren? ratio

is calculated searately for rural and urban areas.

,able o. 13> Ine/uality in !onsu"tion across States of India

Source>-SS reort no. 38> level and attern of consu"tion e$enditure.

In list of to five states for ine/uality in consu"tion in rural areas )oren? ratios for ural and


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level and attern of consu"tion e$enditure.

;1 E*#ima#e$ E+a*#i%i#ie* "7 F""$ E>!en$i#&e ' C"mm"$i#'

,o no* the effect of increase in inco"e on consu"tion of different co""odities& *e

"ust no* the inco"e #lasticities of de"and. For this *e have Inco"e #lasticities of

various co""odities of stale consu"tion fro" IFPP discussion aer rovided in

table no. 1.

,able o. 1> #sti"ated #lasticities of Food #$enditure by !o""odity

!o""odity #$enditure #lasticity

ice -%.21

@heat -%.13

Pulse -%.24

#dible il %.'%

7il %.

Begetables %.4

Sugar %.83

#ggs 1.31

Fish& !hicen and 7eat 1.10

Source>-5e"and and Suly of !ereals in India 2%1%-2%2& IFPI& @ashington

It *as observed that inco"e elasticity of de"and for rice& *heat and ulse *as negative

"eaning these are inferior co""odities. For edible oil& sugar and "il it *as ositive

but belo* 1 "eaning nor"al goods. For #gg& fish& chicen and "eat it *as found to be

"ore than one "eaning that these are the lu$ury co""odities. ,he big /uestion here is

for *hat roortion of eole these lu$ury and nor"al goods are affordable.


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/- )##!(@@@1@)"1in#%"&n#ie*in$en

=1 In$ia?* Pe7"man%e "n G+"a+ &n3e In$e> 2GI4

#very year for all countries of the *orld& lobal unger Inde$ is reared by IFPI

9International Food Policy esearch Institute;& @ashington

,able o.1> Perfor"ance on lobal unger Inde$

Dear India(s an in I ut of total no. of

countries

Score Status

1''% - - 3%. #$tre"ely Alar"ing

2%%0 '4 118 2.%3 Alar"ing

2%%8 88 23.0% Alar"ing

2%%' 88 23.'% Alar"ing

2%1% 0 84 24.1% Alar"ing

2%11 0 81 24.2 Alar"ing

2%12 0' 22.' Alar"ing

2%13 3 08 21.3 Alar"ing

Source:-/1G+"a+ &n3e Re!"#, IFPRI,.0/. an$ .0/1

.1)##!(a#i%+e*1#ime*"7in$ia1in$ia#ime*1%"m:e'@"$3+"a+-)&n3e-in$e>

. It ranges fro" % to 1%%& *here % stands for no hunger *hile 1%% stands for all children

died before the age of five& *hole oulation is undernourished and all the children

younger than five are under*eight. igher the score& *orse is the condition. Balues less

than 4.' reflect lo* hunger& values bet*een and '.' reflect "oderate hunger&

values bet*een 1% and 1'.' indicate a serious& values bet*een 2% and 2'.' are

alar"ing& and values e$ceeding 3% are e$tre"ely alar"ing hunger roble". Fro"the table no. ' rovided belo* it can be observed that over years India(s status on

lobal unger Inde$ is Alar"ing. Perfor"ance *ise over years score is i"roving but

still *e ran a"ong last 12 countries in the *orld.

/01 Deman$ S&!!+' P"e%#i"n* 7" F""$ 3ain*

F""$ Gain Re&iemen# P"e%#i"n

According to !AP reort 92%%'& Policy Crief on de"and for Food rains during2%2%;& India *ill re/uire 28%. "illion tonnes of food grains by 2%2%. 5e"and forulses and oil seeds *ould increase by 14% er cent and 243 er cent resectively. India
http://www.who.int/countries/ind/en/http://articles.timesofindia.indiatimes.com/keyword/global-hunger-indexhttp://articles.timesofindia.indiatimes.com/keyword/global-hunger-indexhttp://www.who.int/countries/ind/en/http://articles.timesofindia.indiatimes.com/keyword/global-hunger-index


19/28

/=

*ould re/uire about 13% "illion tonnes of rice in 2%2% *hile re/uire"ent of *heat

*ould reach 11% "illion tonnes in 2%2%

P"e%#e$ S%enai" "7 .0.0

In the table no. 10 rovided belo*& along *ith the de"and esti"ates of variousagricultural co""odities esti"ated ro6ections of roduction 9do"estic; are co"ared.

,able o. 10 Pro6ected Scenario of 2%2% 9in "illion tonnes;

Cy !AP#sti"ated by

resenterCy Planning !o""ission

!ro

Pro6ected

de"and

during

2%2%

#sti"ated

roduction for

2%2%

5e"and

ro6ected for

Bision 2%2%

Suly ro6ection

for scenario of

Cusiness as usual

9CA


20/28

.0

deficit in roduction co"ared to de"and to the tune of %E. ,his deficit in de"and

*ill have to be "et by i"ort& lie at resent India i"orts %E of its do"estic

vegetable oil re/uire"ent& in absence of significant overn"ent intervention to ste u

the oilseed roduction.

//1 G"enmen# Mea*&e* 7" F""$ Se%&i#'

,here are "any overn"ent Interventions in Agriculture for ensuring food subsidy.

,hese are

ational Food Security 7ission 9FS7;

ashtriya :rishi Bias Do6ana 9:BD;

ational Food Security Act 2%13

ational 7ission For Sustainable Agriculture 97SA;

ational "ission on Agricultural 7echani?ation 97A7;

Cringing reen evolution in #astern India 9CI;

7acro 7anage"ent of Agriculture 977A; Sche"e

Integrated Sche"e of ilseeds& Pulses& il al" and 7ai?e 9ISP7;

ational orticulture 7ission 97;

orticulture 7ission For orth #ast and i"alayan States97#s;

ra"een Chandaran Do6ana

ational Initiative on !li"ate esilient Agriculture 9I!A;

Source> NA AN#S& SI .:.& ANA BI:AS& 2%12& Sur$ey ofAgriculture& olden Peacoc Publications> 1'-'8

Na#i"na+ F""$ Se%&i#' Mi**i"n 2NFSM4

FS7 *as launched in August& 2%%0 by I *ith an ai" of achieving an additional

roduction of 1%& 8 and 2 "illion tonnes of addy& *heat and ulses resectively by

end of 2%11-12. Follo*ing table no. 18 sho*s the erfor"ance of 7ission over

different bench"ar eriods.


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./

,able o.18> Perfor"ance of FS7 9 "illion tonnes;

Cench"ar years 2%%-%0 2%%0-%8 2%%8-%'

Paddy 1%.'0 0.3 .14

@heat 18.%' 1.33 13.22

Pulses 3.%1 2.4 2.4

ote> !alculated by resenter based on data available fro" CI hand boo of Indian

#cono"y& 2%11-12.

overn"ent of India considered 2%%-%0 eriod for evaluating the erfor"ance of

FS7 but given the fact that since rogra""e started in August 2%%0 *hich falls

under eriod 2%%0-%8 and hence *e "ust evaluate the erfor"ance against bench"ar

eriod 2%%0-%8. So erfor"ance against 2%%-%0 bench"ars is very good but

erfor"ance against bench"ar 2%%0-%8& only target for increase in *heat and ulseroduction *as over achieved but for addy it fell short of target. So"e e$erts oine

that erfor"ance be "easured fro" the ne$t year of start of a overn"ent rogra""e

because it taes ti"e to i"le"ent it and hence erfor"ance "ust be "easured fro"

bench"ar eriod of 2%%8-%'. Perfor"ance fro" 2%%8-%' bench"ar eriods is that

FS7 failed to achieve targeted increase in roduction of addy but could over

achieve in case of *heat and ulse.

Ra*)#i'a Ki*)i Vi:a* Y"ana 2RKVY4

:BD Started in 2%%0-%8 for incentivi?ing states to enhance ublic invest"ent to

achieve 4E gro*th rate in agriculture and allied sectors during the 11th

five year lan .5uring 2%%0-11& an a"ount of s.14'8 *as released. Fro" the table no.1' rovided

belo*& it can be observed that highest gro*th in agriculture and allied sectors ca"e in

2%1%-11 *hich *as "ared by ill distribution of rainfall. ,he ob6ective of achieving

4E gro*th rate at the end of 11thfive year lan fell short of target by %.4E oints i.e.

gro*th at the end of 11thfive year lan *as 3..

,able o. 1'> ro*th of Agricultural + Allied Sector 5P

2%%0-%8 2%%8-%' 2%%'-1% 2%1%-11 2%11-12

ro*th in 5P for

Agriculture and alliedSectors 9E;& base year

2%%4-%

.8 %.1 %.8 0.' 3.

Source:-E%"n"mi% S&e', .0/1


22/28

..

/.1 Na#i"na+ F""$ Se%&i#' A%# .0/

ational Food Security Act 2%13 is the latest atte"t "ade by the overn"ent of India

to ensure Food Security of citi?ens. According to the Act %E of urban and 0E of

rural oulation be covered under the roosed lan. ,he Act guarantees roviding

g food grain er erson er "onth at a subsidised rate to 0E of the countryQs

oulation. ,his a"ounts to 82 crore eole in both urban and rural areas. Food grains

*ould include rice& *heat and "illet at s.3& s.2 and s.1 er g& resectively. ,he

annual food grain re/uire"ent for i"le"enting the ational Food Security Cill is

esti"ated at 1 "illion tonnes. ut of this roosed 1 "illion tonnes of food grains&

our 82.4 crore of targeted eole re/uire only 4'.44 "illion tonnes and rest shall be for

other institutional arrange"ents.

In year 2%11-12 F!I rocured .3 "illion tonnes of Food grains and off tae

*as .28 "illion tonnes. ,he stoc at the end of the eriod *as 3.44 "illion tonnes.

ence the re/uire"ent of 1 "illion tonnes can be "et easily *ithout i"acting the

functioning of Food grain "arets.,he Act stiulates that the entitled /uantity of food grains should be sulied

"ainly through Public 5istribution Syste". Pubic 5istribution Syste" is a costly affair

for the overn"ent to follo*. ,his can be sho*n *ith the hel of follo*ing table o.

2%. Fro" the table it can be observed that P5S has the highest cost of transferring one

ruee of benefit to the targeted beneficiary 9s& .30;. P5S is follo*ed in ter"s of cost

by Na*ahar o?gar Do6ana 9s. 4.3;& 7aharashtra #S 9s. 3.1%; and least costly

I!5S 9s.1.8;. nly e$cetional sche"e is Andhra Pradesh ice Sche"e *ith s. .3

as the cost. ,hus by follo*ing resent structure of P5S *e shall incur "ore cost

*ithout reva"ing P5S

,able o. 2%> !ost of ,ransferring ne uee 9s.;

Sche"e !ost of inco"e transfer

Public 5istribution Syste" .30

Andhra Pradesh ice Sche"e .3

Na*ahar o?gar Do6ana 4.3

7aharashtra #S 3.1%

I!5S 1.8%

Source:Indian #cono"y& aurav 5att and Ash*ani 7aha6an& 2%13.

Food security bill also ut before us the /uestion of Food Subsidy& *hich is i"ortant

consideration before olicy "aers. Follo*ing table no. 21 rovides us the details of

ast& resent and esti"ated food subsidy cost to e$che/uer. Fro" the table it can be

observed that during 2%%4-% there had been substantial increase in food subsidy. )ater

on gro*th of food subsidy ca"e do*n and again there *as sudden surt in food

subsidy in 2%%'-1% as *ell as in 2%12-13. It is esti"ated that during 2%13-14 the food

subsidy *ill increase to 124%%% crore uees o*ing to ne* bureaucratic arrange"ents

that *ill have to be "ade for syste"atic i"le"entation of Act.

Since 2%%4-%&


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category Revenue Foregone( in the budget docu"ents. For 2%13-14& the Rrevenue

foregone( is s. .03 lah crore. In the light of these facts it is observable oint that an

additional burden of 3'&%%% crore ruees *ill definitely be a big burden on overn"ent

*hich runs on a fiscal deficit of 4.8E of 5P.

,able o. 21> !ost of Food Subsidy 9in s. !rores& at current rices;

Source:Indian #cono"y& aurav 5att and Ash*ani 7aha6an& 2%13.

R"##in3 )ea# in G"$"@n*

Dear A"ount

2%%%-%1 12&%1%

2%%4-% 2&04

2%%-% 23&%01

2%%-%0 23&828

2%%0-%8 31&2'

2%%8-%' 43&8

2%%'-1% 8&242

2%1%-11 3&844

2%11-12 02&823

2%12-13 8&%%%

2%13-14 9esti"ated ; 124%%%


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,he Food !ororation of India 9F!I; has ad"itted in data accessed through ,I by


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As er the Food Security Act 2%13& Section 2& sub section 0 the ter" HFood Security

H"eans Rthe suly of the entitled /uantity of foodgrains and "eal secified under

!hater II(. According to Section 2& Sub section 8 HFood Security Allo*anceJ "eans

Rthe a"ount of "oney aid by the concerned State overn"ent to the entitled ersons

under section 13(.

,hus the Act i"lies that *e should not loo for overall cover of a daily "an(sre/uire"ent for food but it is an atte"t by the ovt. to suort the food security of

households.


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/1 C"n%+&*i"n

India *ill not have roble" of !ereals availability in the long run 92%2%-21;

and *ill have shortage of Pulse and ilseed roduction if ade/uate stes are not

taen by the overn"ent of India.

Public 5istribution Syste" is a costly "ethod of reaching out to oor eole.

Food Security Cill 2%13 *ill increase the eal Inco"e of the targeted

beneficiaries.

,here e$ists "ore ine/uality in consu"tion in urban areas than in rural areas.

Sustainability of Food Subsidy is sub6ect to oeration of FC7 Act 2%%3.

,o ensure success of Food Security in India *e have to achieve the Food

Production ,argets and i"rove the efficiency of ublic distribution syste".

/1 P"+i%' Im!+i%a#i"n* Atte"ts should be "ade to increase roductivity of cros.

@e "ust focus on cost effective distribution of Food grains in an e/uitable

"anner& in addition to increasing food grain roduction

Public distribution syste" "ust be reva"ed to avoid leaage and :arnataa

"odel should be relicated.

Atte"ts "ust be "ade to increase ilseed and Pulse roduction at an

accelerated rate to overco"e the rotein crisis revailing in our country

Storage of Food grains be "ade "ore scientific and revent rotting of food

grains. eed to curb the gro*th of inflationary tendencies in econo"y in general and

"ore secifically Food Inflation to i"rove nutritional security.

In addition to !ereals& overn"ent should also rovide ulses to sule"ent

lacing rotein in Indian diet.


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Re7een%e*

AD7 5e"and for foodgrains during 11th


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gourav - seminar report on food security in india_myths and realities - with pssm edit (2).doc

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