National Food Security Act "EMPOWER IAS"

Context:

Recently, the NITI Aayog circulated a discussion paper on a proposed revision in the National Food Security Act (NFSA), 2013.

National Food Security (NFS) Act

The NFS Act, 2013 aims to provide subsidized food grains to approximately two-thirds of India’s 1.2 billion people.
It was signed into law on 12 September 2013, retroactive to 5 July 2013.
It converts into legal entitlements for existing food security programmes of the GoI.
It includes the Midday Meal Scheme, Integrated Child Development Services (ICDS) scheme and the Public Distribution System (PDS).
Further, the NFSA 2013 recognizes maternity entitlements.
The Midday Meal Scheme and the ICDS are universal in nature whereas the PDS will reach about two-thirds of the population (75% in rural areas and 50% in urban areas).
Under the provisions of the bill, beneficiaries of the PDS are entitled to 5 kilograms per person per month of cereals at the following prices:

Pregnant women, lactating mothers, and certain categories of children are eligible for daily free cereals.

Implementation

Section 38 of the Act mandates that the Central Government may from time to time give directions to the State Governments for effective implementation of the provisions of the Act.

Key provisions of NFSA

The NFSA provides a legal right to persons belonging to “eligible households” to receive foodgrains at a subsidised price.
It includes rice at Rs 3/kg, wheat at Rs 2/kg and coarse grain at Rs 1/kg — under the Targeted Public Distribution System (TPDS).
These are called central issue prices (CIPs).

The implication for the Centre and the states:

Rationalisation of funds: However, the move to revise the national coverage ratio downward may be opposed by some of the states, the Centre can save up to Rs 47,229 crore ( NITI Aayog).
If the rural-urban coverage ratio remains the same: Then the total number of people covered will increase, that will result in an additional subsidy requirement of Rs 14,800 crore.

What has NITI Aayog asked for review?

A revision of CIPs is one of the issues that have been discussed.
The other issues are updating of the population covered under the NFSA, and beneficiary identification criteria.
Under sub-section (1) of Section 3 of the Act, the term “eligible households” comprises two categories — “priority households”, and families covered by the Antyodaya Anna Yojana (AAY).
Priority households are entitled to receive 5 kg of foodgrains per person per month, whereas AAY households are entitled to 35 kg per month at the same prices.

Provisions for review

Under Schedule-I of the Act, these subsidised prices were fixed for “a period of three years from the date of commencement of the Act”.
While different states began implementing the Act at different dates, the deemed date of its coming into effect is July 5, 2013, and the three-year period was therefore completed on July 5, 2016.
However, the government has yet not revised subsidised prices.
The government can do so under Schedule-I of the Act, after completion of the three-year period.
To revise the prices, the government can amend Schedule-I through a notification, a copy of which has to be laid before each House of Parliament as soon as possible after it is issued.
The revised prices cannot exceed the minimum support price for wheat and coarse grains, and the derived minimum support price for rice.

Propositions by NITI Aayog

The NITI Aayog has suggested that the national rural and urban coverage ratio be reduced from the existing 75-50 to 60-40.
If this reduction happens, the number of beneficiaries under the NFSA will drop to 71.62 crores (on the basis of the projected population in 2020).
To make these changes in the law, the government will have to amend sub-section (2) of Section 3 of the NFSA. For this, it will require parliamentary approval.

Implications of the move

If the national coverage ratio is revised downward, the Centre can save up to Rs 47,229 crore (as estimated by the NITI Aayog paper).
On the other hand, if the rural-urban coverage ratio remains at 75-50, then the total number of people covered will increase from the existing 81.35 crores to 89.52 crore —an increase of 8.17 crore.
This estimate by the NITI Aayog is based on the projected 2020 population, and, according to the paper, will result in an additional subsidy requirement of Rs 14,800 crore.

National Food Security Act (NFSA), 2013

Notified on: 10^th September, 2013
Objective: To provide for food and nutritional security in the human life cycle approach, by ensuring access to adequate quantities of quality food at affordable prices to people to live a life with dignity.
Coverage: 75% of the rural population and upto 50% of the urban population for receiving subsidized foodgrains under Targeted Public Distribution System (TPDS).

Eligibility:

Priority Households to be covered under TPDS, according to guidelines by the State government.
Households covered under existing Antyodaya Anna Yojana.

Provisions:

5 Kgs of foodgrains per person per month at Rs. 3/2/1 per Kg for rice/wheat/coarse grains.
The existing AAY household will continue to receive 35 Kgs of foodgrains per household per month.
Meal and maternity benefit of not less than Rs. 6,000 to pregnant women and lactating mothers during pregnancy and six months after the child birth,
Meals to children upto 14 years of age.
Food security allowance to beneficiaries in case of non-supply of entitled foodgrains or meals.
Setting up of grievance redressal mechanisms at the district and state level.

Antyodaya Anna Yojana

It was launched in December, 2000.
It involved identification of one crore poorest of the poor families from amongst the number o f Below Poverty Line families covered under TPDS within the States and providing them food grains at a highly subsidized rate.

Some target groups identified under AAY are:

Landless agricultural labourers, marginal farmers, rural artisans/craftsmen and persons earning their livelihood on a daily basis in the informal sector.
Households headed by widows/terminally ill persons/disabled persons/senior citizens.
Widows or terminally ill persons or disabled persons or senior citizens.
All primitive tribal households.

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