FOOD SECURITY BILL-A POLITICAL HARAKIRI?

After the high decibel proclamations and declarations during the last two years, the much talked about Direct Cash Transfer Scheme of the Government of India is yet to take off with repeated postponements. Besides the Re 1 per kg rice scheme touted as one of the most progressive measure of the government is still in the limbo though a few state governments like that in Tamil Nadu have already started such a program on their own without waiting for Delhi to pass the ridiculously called food security bill! The political class seems to think that food security means only access to cereals and by providing them at throw away price, the nutrition security is also taken care of! The poor people in this country are being taken for a ride by such populist measures with short term impact. True by providing the cereals the people might not die definitely it is adequate to keep the skin and the bone together! To add to the confusion there is a stupid suggestion that those entitled for food grains from the PDS should be given cash equivalent with which they can buy their food requirements and the "pundits" who are promoting this line of thinking are baiting the government with the possibility in saving thousands of crore of rupees by preventing pilferage from the PDS. Here is a take on this muddled thinking and the country will have to wait with bated breath as to what is going to happen between now and the forthcoming election in the middle of next year.

"India's hard won gains in achieving food security are in danger of being undermined by a clause in the National Food Security Bill that encourages States to adopt cash transfers in lieu of food entitlements under the Public Distribution System (PDS). Supporting this view, a recent report by the Commission for Agricultural Costs and Prices (CACP) concluded that the provision of food subsidies in the form of cash would save the government crores of rupees. Additionally, cash transfers will supposedly eliminate middlemen such as dealers and transporters, ensuring that the subsidy reaches intended beneficiaries. Cash transfers are a solution only if we view the PDS in isolation, rather than as part of a larger food policy. India's food policy begins with the procurement of rice and wheat and price support operations by the Food Corporation of India (FCI) and the CACP. Each State is entitled to purchase a certain amount of food grains from the FCI at subsidised prices for distribution through its Fair Price (Ration) Shops. It is this distribution end that constitutes the PDS, and what the cash transfers would replace. Besides not taking into account the devaluing effect of inflation or the role of intrahousehold dynamics when it comes to cash transfers, its supporters do not specify what would happen to the agricultural commodities that are procured by the FCI. As the policy exists today, the government holds millions of tons of rice and wheat, well above the buffer norms required by law. To reduce its stocks, the government has preferred open market operations (to bulk consumers) and export to distribution through the PDS".

No one in the government including the economists and sociologists has given any thought to the adverse consequences of putting money in the hands of the beneficiaries in lieu of grains. There is no guarantee that this money will be spent on food only and it is more likely that there would be vast growth of liquor industry which will have to cater to the increased demand for its products from this section of population with food subsidy money in their hands! Another disaster which is inevitable is the transformation of this segment of population into a morbid mass with no motivation for working. One of the reasons for shortage of labor in the country is this distribution of "alms" in the name of poverty while there is this continuous claim that the unemployment rate is high in the country. Unemployment may be high but those who want to work can always get work. Combined with the NREGA assuring a daily wage of Rs 150 per person for at least 150 days, the "freebie" scheme under the food security bill can bebilitate this country beyond recognition!   

V.H.POTTY
http://vhpotty.blogspot.com/
http://foodtechupdates.blogspot.com

ADDRESSING FOOD PROBLEMS-STILL A FIRE FIGHTING APPROACH?

Government of India, which ever party holds power at any given time, has always indulged in fanciful announcements, mostly crafted by the omnipotent bureaucrats but with no urgency to implement them. Latest to emerge from New Delhi is regarding the grandiose plan to set up a Special Purpose Vehicle (SPV) what ever that means, to "undertake" studies on food problem facing the country. The announcement coming from a junior minister can only raise laughter because the so called SPV will be a lame duck set up with umpteen number of similar groups which have been doing similar studies with no solution in sight for any of the problems faced by the hapless citizens of the country! Have a look at the grandiose statement by the minister which looks ridiculous to most observers familiar with the issues on the food front.

India Government has decided to create a Special Purpose Vehicle to undertake studies of food grain storage, handling and its transport. It will also assess cold chain infrastructure requirements and will endeavour private sector participation in creation of such facilities. A comprehensive study is also being undertaken by the Planning Commission to suggest measures for creation of modern food grain storage infrastructure in the country, according to Prof. K.V.Thomas, Minister for Consumer Affairs, Food & Public Distribution. Inaugurating the national Conference on Policy for Storage of Food Grains the other day, Prof Thomas apprised the audience of steps taken by the Government to create additional storage capacity for food grains in the country. Hes said that his ministry has proposed creation of two million tonnes of additional storage through modern silos. This will be part of about 15 million tones of new storage capacity being created under Public Entrepreneurs Guarantee (PEG) scheme of FCI. Central Warehousing Corporation (CWC) is also creating 10,000 tonnes of temperature control storage facilities on pilot basis, the minister said.

The "Aam Admi" person in this country has every right to question the credibility of a government which callously allows thousands of tons of food grains under its custody to rot inviting wrath from even the Supreme Court! What prevented the government from building up the infrastructure for handling and storage of food grains for so many years though adequate funds are available at its disposal? Technology could not have been the constraint and technical man power is available in plenty. What lacks is the commitment and concern about those who go hungry day and night due to poverty, food inflation and hijacking of PDS by grain mafia, probably in collusion with the establishment!

V.H.POTTY
http://vhpotty.blogspot.com/
http://foodtechupdates.blogspot.com