Govt clears food security Bill, to be tabled in Parliament this week

19 Dec 2011 Evaluate

The Union Cabinet cleared the much-awaited draft Food Security Bill, paving the way for subsidized food grains to poor. The food security Bill, which seeks to give legal privilege of cheaper food to 75% of rural and 50% of urban population, will cost an additional subsidy of Rs 27,663 crore.

Under the Bill, each person of the priority household, similar to Below Poverty Line (BPL) families under current Public Distribution System (PDS), would be supplied seven kg of rice, wheat and coarse grains per month at the rate of Rs 3, Rs 2 and Rs 1 per kg respectively. Accordingly the implementation of this would result in higher food subsidy by Rs 27,663 crore taking the overall figure to about Rs 95,000 crore.

Food minister K V Thomas said a meeting of the cabinet that cleared the Bill also decided to introduce it in the current session of Parliament. By adding further he said, ‘the objective is to provide access to nutrition at affordable rates to citizens. The Bill will also bring within its fold a number of ongoing schemes’. The draft was passed ‘unanimously’ with all ministers approving to the proposals.

At present, the targeted PDS provides subsidized grains to around 6.52 crore BPL families and almost 11.05 crore above the poverty line (APL) families. Once the Bill is in operation under the PDS, the government would require 61 million tonnes of food grains to provide food security as against 55 million tonnes.

It was in July that an empowered Group of Ministers cleared the draft food bill, following which major changes like incorporating a provision for providing free meals and an allowance of Rs 1,000 per month for six months to pregnant women and lactating mothers were included - at the firmness of Congress President Sonia Gandhi.

The draft Bill also faced rigorous opposition from the states largely on the back of a high cost burden that the states would have to bear. According to food ministry officials, the Bill would increase the expenditure burden by just Rs 51,000 crore annually, but an agriculture ministry official said the actual expenditure of running the programme would be more than Rs 200,000 crore, as it has to include enhanced budget provision of the agriculture ministry which needs to raise farm production to meet the obligations under the Bill.

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