Food security bill in India : Pros and Cons in Indian Economy

Wednesday, August 28, 2013
After about 300 amendments finally Government was able to pass food security bill on 26th August 2013 in Lok sabha. This was due for Congress who was suffering from policy crisis, corruption charges as well as inability to control inflation. This food security bill was expected to be an ace for Congress before election. However there are several questions which need to be answered. Before that let us find out what actually is this food security bill?

What is food security bill?

Food security bill is a provision by the Government to supply foodgrains in very cheap price with an aim to secure food for all. The beneficiaries under food security bill will be almost two third population of India. The food grains which will be supplied in subsidides rates are wheat, rice and coarse grains.

What are the provision and salient features and who are beneficiaries of Food security bill

The beneficiaries of food security bill will be 75% of rural population out of which 46% will be in priority category and 50% of urban population in which 28% will be in priority category. This will cover below poverty line people, pregnant mother and children upto 14 years of age. A ration card will be issued and women of the family will be head of the household for issuing ration card. As per the bill the priority catefory will get 7kg of food grains per person at a price of 3 Rs per kg for rice, wheat at 2 Rs per Kg and coarse grain at 1 Re per kg.

General category will get 3kg of food grain per person at a price not exceeding 50% of support price.

Pregnat and lactating mother will get free meal upto 6 months after delivery. Apart from these benefits pregnant mothers will also get Rs 6000 as maternity benefit.

Children upto 14 years of age will get free meal.

Free meal for destitute, homeless person, disaster victims or the person on the verge of starvation

In case the foodgrains are not supplied a food allowance will be provided to the beneficiaries.


Advantage and disadvantage of Food security bill on Indian Economy

The advantage seems to be very few, the bill has been passed to encash it during upcoming election in 2014 to capture the vote of weaker section. However if implemented with some amendments with proper monitoring Food for all slogan will be fulfilled.

The major drawbacks are a huge economic pressure of 1.25 lakh crores which may lead to further rise in inflation and the remaining 33% which will not come this scheme will have to face the tune.

Availability of food grains depends on agriculture which is very much vulnerable as we have to be dependent upon the monsoon.

Another platform for corruption, there is high chance of black marketing of food grains, corruption in issuing blue cards to BPL.

With falling rupee value India is already facing a crisis situation and food security bill may be an additive factor.

We will be glad to know your opinion about food security bill as a response to this article.

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