Monday, November 11, 2013

FOOD SECURITY IN INDIA: ISSUES

By Prof. Joseph K Alexander

The Indian Institute of Public Administration theme paper prepared for its Annual conference in Oct 2013 before the signing of the Food Security Act on12 th Sept 2013 analyses availability, accessibility and nutrition (absorption) of the food by the 1.3 billions of India. Since independence in1947 the cereal production in India increased from the 50 m.t to 245 m.t per annum and increased food availability.  This reduced poverty line (calorie consumption) from around 60 % to 25 %.of the population. Production of pulses, oil, dairy & poultry products are still far below the consumption standards in developed countries. The Green Revolution days saw increase in Investment in the Agriculture sector. The wide spread use of chemical fertilizers and pesticides polluted and also depleted the fertility of the soil .The decrease in yields decreased the investment trends in Agriculture. Net result is recent deceleration in the growth of the Agrl sector.
The increase in economic growth and income of the people increased their accessibility to food. The universal PDS since 1960’s helped the poor also to have some food. The New Economic policy of 1991 changed the PDS to TPDS (Targeted Public Distribution System) to reduce its financial cost. World Bank imposed it on us as a condition for aid. This not only siphoned food ration to black market but also reduced availability of food to the marginalized. It also increased the administrative cost of the Ration system.
Regarding the nutrition level of the food intake of the marginalized poor, the school children, girls, pregnant and nursing mothers and infants are deplorable.
In view of the above observations the India Food Security Act 2013 is a bold jump into the financial quagmire of revenue, fiscal and current account deficits of the country.  The cost of the scheme is estimated to be Rs.1.30 lakh crores per annum.  
Nevertheless the Act is a positive move to answer the lacunae in the food security system. It’s provisions: subsidized food grain a right for 67 per cent of population; Act offers rice at Rs 3, wheat at Rs 2 and coarse cereals at Rs 1 per kg to the poor; Antyodaya Anna Yojana will be given 35 kg of food grains p.m.; Pregnant women and lactating mothers would receive maternity benefit of Rs 6,000; Children aged six months to 14 years will get take-home rations or hot cooked food; etc are good.
Yet I am worried
1. In quantity constrained Indian economy supply of Govt. services are always far less than their demand .Corruption is inherent. The subsidized food is siphoned off into the black-market. The officials, ever greedy politicians who want funds for election campaigns and the food needy public will make the Act a mockery
2. The Act is a hurried ill prepared political move to face the impending election
3. The country will not be able to bear the heavy subsidy. It will be difficult even to raise funds by internal or external borrowing. The TPDS itself was costlier than PDS system. Now we have to specially cater the APL. BPL but also the special Andyodaya groups, school children up to 14 years old,  girls, pregnant women, nursing mothers and infants, who all require special provisions. The administrative cost of identifying these categories and weekly catering them is going to be herculean task involving heavy cost.
4. The multi-party coalitions with their fluid alignments-based competitive politics make each coalition group that come to power to make it a point to please their ranks. So everyone in power like ek-din-ka-sultan vies with one another to please his rank and file. UDF and LDF coalitions also do the same. Politicians in power prompt their mob caucuses to organize show of samarams, jathas, sit-in-strike etc to hoodwink the public and grant their request. Gibbons in his book “Decline & Fall of the Roman Empire" gives ten reasons for Rome’s decline. Of them one is the enormous excess expenditure to please the patrician mass of Roman citizens. Our Indian democracy also is tending towards to be a mobo-cracy of mounting subsidies and doles leading to heavy revenue deficits. Mrs. Thatcher, the new Prime Minister faced a similar situation in England and saved the country by drastic cut of such expenditures. Unless we do the same we may soon face the Roman situation.  These are some issues to be solved.

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