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Table of Contents
Salient Features of the National Food Security Ordinance (NFSO)
FOOD SECURITY HOW THE PROCESS WORKS- FLOW
CHART
Rights and Entitlements?
Frequently Asked Questions-FAQs
1) Why is there a need for a law on Food Security?
2) What is the National Food Security Ordinance and how is it
different from existing schemes or programmes of a similar
nature?
3) As per the Ordinance, only 67% of the population will be covered
under TPDS. Why the coverage cannot be universalized?
4) For BPL households, the entitlement of 5 kg. means reduction in
what they are currently getting under TPDS? Will it not hurt
them?
5) Will the Antayodaya Anna Yojana be affected under this law?
6) Why the right to food is restricted to only foodgrains and does not
include pulses, edible oils, etc?
7) The Ordinance seems to address only the basic requirements in
terms of foodgrains and seems to lack focus on nutritional
aspects. How can this then be called a comprehensive approach
to food security?
8) What are the specific benefits and guarantees for women and
children?
9) What are the provision for enhancing nutritional standards?
10) Whether the Government has sufficient foodgrains to meet the
obligations under the Ordinance?
11) It is argued that the Ordinance will dissuade the farmers,
especially the small and marginal farmers, from producing
foodgrains as they will be assured to get highly subsidized
foodgrains to meet their consumption requirements. Your
response?
12) States have been complaining about additional financial burden
that the legislation on food security imposes on them. How will
Central Government bring States on board as it is the States who
have to implement the Ordinance?
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13) In a Central legislation, how fair is it to put the responsibility of
payment of food security allowance on State Government?
14) How soon the Ordinance is expected to be actually implemented
by States?
15) Any rights based approach can work only if there is an
independent grievance redressal mechanism. What does
Ordinance provide in this regard?
16) Identification of households to be covered is proposed to be left
to States. Every State will adopt different criteria, leading to a
situation of households with same socio-economic condition
getting the benefit in one State but not in other State. How
desirable is this?
17) How is Aadhar linked to the Public Distribution System
(PDS)?
18) Will the NFSO lead to expenditure close to 3% of
GDP?
19) It is generally believed that the Public Distribution System needs
a major overhaul. How does the NFSO propose to address this?
20) There have been numerous cases of foodgrains rotting due to lack
of storage facilities. What provisions have been made in the NFS
Ordinance to create more storage?
21) Leakages in the delivery systems have been noticed all
throughout the chain. How will NFSO ensure a corruption free
system?
22) How can Congress Party workers help in the effective
implementation of this law?
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QUICK RESPONSES
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CRITICISMS AND THEIR ANSWERS
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Salient Features of the National Food Security
Ordinance (NFSO)
1. Preliminaries
The Ordinance seeks “to provide for food and nutritional security in
human life cycle approach, by ensuring access to adequate quantity
of quality food at affordable prices to people to live a life with dignity
and for matters connected therewith and incidental thereto”.
It extends to the whole of India and “shall come into force on such
date as the Central Government may, by notification in the Official
Gazette appoint, and different dates may be appointed for different
States and different provisions of this Act”.
2. Entitlements
Public Distribution System (TDPS)
Eligible households are entitled to 5 kgs of foodgrains per person per
month, and Antyodaya households to 35 kgs per household per
month. The combined coverage of Eligible and Antyodaya
households shall extend “up to 75% of the rural population and upto
to 50% of the urban population”
The PDS issue prices are given in Schedule I : Rs 3/2/1 for
rice/wheat/millets (actually called “coarse grains” in the Ordinance).
These may be revised after three years.
Children's Entitlements
For children in the age group of 6 months to 6 years, the Ordinance
guarantees an age-appropriate meal, free of charge, through the local
anganwadi. For children aged 6-16 years, one free mid-day meal
shall be provided every day (except on school holidays) in all schools
run by local bodies, government and government aided schools, up to
Class VIII. For children below six months, “exclusive breastfeeding
shall be promoted”.
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Children who suffer from malnutrition will be identified through the
local anganwadi and meals will be provided to them free of charge
“through the local anganwadi”.
Entitlements of Pregnant and Lactating Women
Every pregnant and lactating mother is entitled to a free meal at the
local anganwadi (during pregnancy and six months after child birth)
as well as maternity benefits of Rs 6,000, in instalments, as may be
decided by the Central Government from time to time.
3. Identification of Eligible Households.
The Ordinance does not specify criteria for the identification of
households eligible for PDS entitlements. The Central Government
is to determine the state-wise coverage of the PDS, in terms of
proportion of the rural/urban population subject to the ceiling of 75%
of the rural population and 50% of the urban population for the
country as a whole.
Then numbers of eligible persons will be calculated from Census
population figures. The identification of eligible households is left to
State governments, subject to the scheme's guidelines for Antyodaya,
and subject to the guidelines to be “specified” by the State
Government for the eligible households. The lists of eligible
households are to be placed in the public domain and “displayed
prominently” by state governments.
(Notes : (1) “Meal”, is defined in the Ordinance as “hot cooked meal
or ready to eat meal or take home ration, as may be prescribed by the
Central Government”. All “meals” have to meet nutritional norms
specified in Schedule II, (2). The entitlements of women and
children are to be delivered by State Governments through schemes
“in accordance with the guidelines, including cost sharing” to be
prescribed by the Central Government. (3) Every school and
anganwadi is to have “facilities for cooking meals”, drinking water
and sanitation”. (4) For purposes of issuing ration cards, the eldest
(4)
woman in the household(not less than 18 years of age) shall be
considered head of the household].
4. Food Commission
The Ordinance provides for the creation of State Food Commissions.
Each Commission shall consist of a chairperson, five other members
and a member-secretary (including at least two women and one
member each from Scheduled Castes and Schedule Tribes).
The main function of the State Commission is to monitor and evaluate
the implementation of the act, give advice to the states governments
and their agencies, and inquire into violations of entitlements (either
suo motu or on receipt of a complaint, and with “all the powers of a
civil court while trying a suit under the Code of Civil Procedure
1908”).
State Commissions also have to hear appeals against order of the
District Grievance Redressal Officer and prepare annual reports to be
laid before the state legislature.
The State Commission may forward “any case” to a Magistrate
having jurisdiction, who shall proceed as if the case has been
forwarded under Section 346 of the Code of Criminal Procedure
1973.
5. Transparency and Grievance Redressal
The Ordinance provides for a two-tier grievance redressal structure,
involving the District Grievance Redressal Officer(DGRO) and State
Food Commission. State governments must also put in place an
internal grievance redressal mechanism which may include call
centres, help lines, designation of nodal officers, “or such other
mechanisms as may be prescribed”
Transparency Provisions
Mandatory transparency provisions include : (1) placing all PDS(5)
related records in the public domain and keeping them open for
inspection to the public; (2) conducting periodic social audits of the
PDS and other welfare schemes; (3) using information and
communication technology (including end-to-en computerisation of
the PDS) “to ensure transparent recording of transactions at all
levels”; (4) setting up vigilance committees at state, district, block
and fair price shop levels to supervise all schemes under the act.
District Grievance Redressal Officers
DGROS shall be appointed by state governments for each district to
hear complaints and take necessary action according to norms to be
prescribed by state governments. If a complainant (or the officer or
authority against whom an order has been passed by the DGRO) is not
satisfied, he or she may file an appeal before the State Food
Commission.
Penalties and Compensation
The Food Commissions have powers to impose penalties. If an order
of the DGRO is not complied with, the concerned authority or officer
can be fined upto Rs 5,000/-. The Commission can authorise “any of
its members” to act as an adjudicating officer for this purpose.
In case of “non-supply of the entitled quantities of food grains or
meals to entitled persons”, such persons will be entitled to a food
security allowance from the government, as prescribed by the central
government.
6. Other Provisions
PDS Reforms
In Chapter VII, the ordinance states that central and state
governments “shall endeavour to progressively undertake” various
PDS reforms, including: doorsteps delivery of foodgrains; ICT
applications and end-to-end computerisation, leveraging “aadhaar”
(UID) for unique identification of entitled beneficiaries; full
transparency of records; preference to public institutions or bodies in
licensing of fair price shops; management of fair price shops by
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women or their collectives, diversification of commodities
distributed under the PDS; full transparency of records; and
“introducing schemes such as cash transfer, food coupons or other
schemes to the targeted beneficiaries in lieu of their foodgrain
entitlements” as prescribed by the central government.
For purposes of issuing ration cards, the eldest woman in the
household (not less 18 years of age) shall be considered head of the
household.
Obligations of Government and Local Authorities
The main obligation of the Central Government is to provide
foodgrains (or, failing that, funds) to state governments, at prices
specified in Schedule I, to implement the main entitlements. It also
has to “provide assistance” to state governments to meet local
distributions costs, but on its own terms (“as may be prescribed”).
The Central Government has wide-ranging powers to make Rules.
The main obligation of state governments is to implement the
relevant schemes, in accordance with the guidelines issued by the
Central Government. State Governments also have wide-ranging
powers to make Rules. They are free to extend benefits and
entitlements beyond what is prescribed in the Ordinance, from their
own resources.
Local Authorities and Panchayati Raj Institutions are responsible for
proper implementation of the act in their respective areas, and may be
given additional responsibilities by notification.
7. Schedules
The Ordinance has three schedules (these can be amended “by
notification”). Schedule I prescribes issue prices for the PDS.
Schedule 2 prescribes “nutritional standards” for midday meals, takehome rations and related entitlements. For instance, take-home
rations for children aged 6 months to 3 years should provide atleast
500 calories and 12-15 grams of protein.
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Schedule 3 lists various “provisions for advancing food security”,
under three broad headings: (1) revitalization of agriculture (i.e.
agrarian reforms, research and development, remunerative prices),
(2) procurement, storage and movement of foodgrains (e.g.
decentralised procurement), and (3) other provisions (e.g. drinking
water, sanitation, health care, and “adequate pensions” for “senior
citizens, persons with disability and single women”.
Population - 120 Crores
Rural - approx 84
Urban - appreox 36
crores
crores
Food Security for
75% or rural population =
63 crores approx
50% or urban population =
18 crores approx
Therefore, a total 81 crore people can benefit under Food Security Scheme
Priority households
Antodaya households*
* 5 kilograms of food grains per person per month at Rs. 3/Kg for
wheat, Rs. 2/Kg for rice, and Rs. 1/kg for coarse grain
* 35 kilograms of food grains per person per month at Rs. 3/Kg for
wheat, Rs. 2/Kg for rice, and Rs. 1/kg for coarse grain
For pregnant women and lactating mothers
Meal during pregnancy and upto six months after childbirth and Rupees 6000
in instalments. (Women employed in Central and State Govts and PSIs or those
included under any other law in force are excluded)
Children aged 6 months to 6 years
Free meal at local Anganwadi
Exclusive Breast feeding to be promoted for children under 6 months
Children aged 6 years to 14 years
Mid day meal scheme at school
CHART 1 - QUANTUM of benefits under Food Security Ordinance
*Refers to those households currently covered by the Antodyaya Anna yojana in each state
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FOOD SECURITY - HOW THE PROCESS WORKS - FLOW CHART
Central
Government
procures food
through FCI
through their
own agencies
or through
State
Governments
and their
agencies
Total Budget
Coordination with
state government
PDS Reforms
Grievance Redressal
Financial
Terms and
Conditions
Aadhar (for
biometric
identification
of entitled
beneficiaries
for full
transparency
and proper
targetting
• At the proposed coverage of entitlement, total estimated annual foodgrains
requirement is 612.3 lakh tons and corresponding estimate food subsidy for
2013-14 costs is about Rs. 1,24,724 crore.
• The additional financial burden on the government would only be around
Rs. 23,800 crore when the existing food subsidy and related welfare schemes
are merged.
• Central government to arrange for allocating food grains to the states, provide
transportation to depots in each state,
• Central government shallprovide assistance to state governments in meeting
expenditure incurred towards intra-state movement, handling foodgrains and
margins to fair shop price dealers.
• State government to identify through the anganwadis, and provide free meals
to children suffering from malmutrition to enable them to meet the required
nutritional standards.
• A State food Commission to be set up by the State Government consisting
of a Chairperson, 5 members and a member-secretary.Commission to include
2 women, 1 SC and 1 ST.
• Doorstep delivery of foodgrains to TPDS outlets
• Transparent recording of transactions at all levels with end to end computerisation
• Preference to public institutions and bodies such as Panchayats, SHGs, cooperatives,
licensing of fair price shops, management of Fair Price shops by women
• Diversification of commodities under the scheme over a period of time
• Cash transfer, food coupons, etc. to targetted beneficiaries in lieu of foodgrain
entitlements.
• Call centres, helplines, designation of nodal officers
• Grievance Redressal officer to be appointed in each district
• Grievance Redressal Officer will hear complaints regarding non-distribution of
entitled food grains or meals and take necessary steps for redressal.
• Any person not satisfied with redressal may approach the State Food Commission
*Refers to those households currently covered by the Antodyaya Anna yojana in each state
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Rights and Entitlements?
The aim of the National Food Security Ordinance is to ensure that noone goes hungry and that everyone is well nourished. The Ordinance
is based on a lifecycle approach that attempts to ensure adequate
nutrition for every age group. The entitlements of persons in different
age groups are as follows:
1. All children aged between 6 months and 6 years of age :
Appropriate nutritious meal free of charge through the local
Anganwadi.
2. All children in the age group of 6 months 3 years : Take home
ration free of charge.
3. All children in the age group of 3-6 years : Nutritious morning
snack and hot cooked meal.
4. All children in the age group of 6 months 6 years who are
malnourished: Take home ration.
5. All children attending government schools upto class VIII or
upto 14 years : A nutritious, cooked midday meal every day
during the school.
6. All pregnant women and lactating mothers: Nutritious food from
the local Anganwadi, in the form of a cooked meal every day or
take-home rations.
7. Every eligible household: Cheap foodgrains from the Public
Distribution System 5kgs, per person per month at Rs 3/kg for
Rice, Rs 2/kg for Wheat and Rs 1/kg for millets.
8. Antyodaya households will continue to be entitled to 35 Kgs of
foodgrains per month per household, at 3/Kg for rice and Rs.
2/Kg for Wheat, and Rs 1/kg for millets.
Eligible households under the Ordinance refers to any household that
does not meet exclusion criteria (such as having a government job) to
be specified by the state government. At least two thirds of the
population will be included in this category: 75% in rural areas and
50%^in urban areas. These percentages will be even higher in the
poorer states.
Radical reforms of the PDS will also be undertaken under the Act to
ensure that the system works well. No more embezzlement of PDS
foodgrains!
For the purposes of issuing ration cards, the eldest women in the
household (not less than 18 years of age) shall be considered head of
the household.
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Frequently Asked Questions-FAQs
1)
Why is there a need for a law on Food Security?
Currently, there are different programmes of the Government of India
(GoI) for the disbursement of foodgrains to the poor and the
promotion of nutrition. The National Food Security Ordinance
(NFSO) consolidates all of these in one statute. This has the added
advantage of ensuring that the entitlements become statutory
guarantees that cannot be taken away or modified arbitrarily.
This law also marks the realization of a long standing commitment of
the Congress Government to bring a law on Food Security. The
Congress Party in its 2009 Manifesto promised enactment of law
along the lines of the MGNREGA programme which will guarantee a
legal entitlement to food.
2) What is the National Food Security Ordinance and how is it
different from existing schemes or programmes of a similar
nature?
The proposed law converts into legal entitlements the provisions of
various food security schemes of the GoI, to ensure adequate quantity
and quality of food at affordable prices to people to live their life with
dignity. The law takes a life cycle approach to food security,
recognizing the specific food and nutritional needs of different age
groups and gender.
If the foodgrains are not provided for whatever reason, the law
provides for payment of a food security allowance to fulfill the
entitlement.
3)
As per the Ordinance, only 67% of the population will be
covered under TPDS. Why the coverage cannot be
universalized?
The entitlement proposed in the Bill are based on recent trends in
production and procurement of foodgrains. The average annual
procurement of foodgrains during 2007-08 to 2011-12 has been
about 60.24 million tons. In comparison, the foodgrain requirement
for covering the whole population under TPDS, even with an
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entitlement of 5 kg per person per month, is estimated at 72.6 million
tons. Requirement for OWS would be additional. It is not feasible to
meet such a high level of foodgrain requirement at the current levels
of production and procurement.
4)
For BPL households, the entitlement of 5 kg. means
reduction in what they are currently getting under TPDS?
Will it not hurt them?
At present, the TPDS covers 6.52 crore Below Poverty Line (BPL)
families, including 2.50 crore Antyodaya Anna Yojana (AAY)
families on the basis of population estimates of 1999-2000 of
Registrar General of India and poverty estimates of 36% (1993-94) of
Planning Commission. The rest of the families are covered as Above
Poverty Line (APL). The AAY and BPL families are allocated 35 kg
foodgrains per month. Allocation to APL families is subject to
availability of foodgrains. The per kg Central Issue Prices (CIPs) of
wheat / rice are @ Rs 2/3 for AAY, Rs.4.15/ 5.65/kg for BPL families
and Rs.6.10/.8.30/kg for APL families respectively.
As can be seen, only about one fourth of the total estimated
households at present have fixed entitlement of 35 kg. per family per
month. NFSO on the other hand proposes to give legal entitlement to
receive 5 kg of foodgrains per month to about 67% of the population
at the all India level. Within this coverage, entitlement of AAY
households, which constitute the poorest of the poor, is being
protected at 35 kg per household per month. Further, all the
households covered by the Ordinance under TPDS will be entitled to
receive wheat and rice at Rs.3 and 2 per kg, which is the current AAY
price. As a result, the existing BPL households also, who will face
reduction in their entitlement in terms of quantity of foodgrains, stand
to gain in terms of highly subsidized prices.
5)
Will the Antayodaya Anna Yojana be affected under this
law?
No. The AAY will remain as it is. In other words, the poorest of the
poor households shall continue receiving 35 kg of foodgrains,
regardless of the number of people in the family. This is without
prejudice to the other entitlements under the law.
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6)
Why the right to food is restricted to only foodgrains and
does not include pulses, edible oils, etc?
There is huge dependence on imports for meeting the domestic
demand for pulses and edible oils. Also, the procurement
infrastructure and operations for pulses and oilseeds are not strong at
this moment. In the absence of assured overall domestic availability
of these commodities and weak procurement operations, it is not
possible to confer a legal right for their supply. The Government is
however implementing schemes for supply of subsidised pulses and
edible oils to targeted beneficiaries. Simultaneously, steps will be
taken to improve procurement operations for pulses and oilseeds.
7)
The Ordinance seems to address only the basic requirements
in terms of foodgrains and seems to lack focus on nutritional
aspects. How can this then be called a comprehensive
approach to food security?
Malnutrition is no doubt a serious issue facing the nation. It is
however, not a correct assessment to suggest that the Bill does not
address the issue at all. It does seek to address the problem of
malnutrition among pregnant women and children which has to be
the focal point of our strategy to address this challenge.
There is a special focus in the Ordinance on nutritional support to
women and children. Pregnant women and lactating mothers, besides
being entitled to nutritious meals as per the prescribed nutritional
norms, will also receive maternity benefit of not less than Rs. 6000/-.
Children in the age group of 6 months to 6 years will be entitled to
take home ration or hot cooked meal as per the prescribed nutritional
standards. Higher nutritional norms have been prescribed for
children in the age group of 6 months to 6 years who are
malnourished. Children in the lower and upper primary classes upto
class VIII or 14 years will be entitled to nutritious meals in the schools
as per the prescribed nutritional norms.
8)
What are the specific benefits and guarantees for women and
children?
The NFSO gives special attention to women and children. Some
salient provision are :
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•
Ration cards for eligible will be issued in the name of the eldest
woman, over 18 years of age. Further more, the Head of the
household will be the woman.
•
Meals, free of charge, for women during pregnancy and six
months after child birth shall be provided.
•
Maternity allowance of a minimum of Rs 6000/- will be given to
pregnant and nursing mothers.
•
Meals, free of charge, for children between 6 months and 6 years
shall be provided.
•
Mid day meals, free of charge, for children between 6 years and
14 years shall be provided.
•
Meals, free of charge, for children who suffer from malnutrition
shall be provided.
9)
What are the provision for enhancing nutritional standards?
Alongwith the provision of adequate quantity of food, the law places
emphasis on the provision of nutritious meals (as laid out in Schedule
II of the Ordinance) to provide a balanced diet in terms of calorie
count, protein value and micronutrients. The provisions include:
•
Supplying coarse cereals through the PDS. These are known to
be nutritionally superior to wheat and rice.
•
Take home rations for children between 6 months and 6 years
and hot cooked meals for children between 3 years and 6 years of
age.
•
Take home rations for malnourished children between 6 months
and 6 years of age.
•
Hot cooked meals for lower and upper primary class children.
•
Take home rations for pregnant and lactating mothers.
10) Whether the Government has sufficient foodgrains to meet
the obligations under the Ordinance?
Total annual requirement of foodgrains, including foodgrains
required for other welfare schemes, is estimated at 612.3 lakh tons.
Procurement of foodgrains (wheat and rice), both in absolute quantity
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and in terms of percentage to production, has improved in recent
years. The average annual procurement, which was 382.2 lakh tons,
i.e. 24.30% of the average annual production during 2000-2001 to
2006-07, has gone up to 602.4 lakh tons during 2007-08 to 2011-12,
i.e 33.24% of the average annual production. It will therefore be
possible to meet the requirement at the current levels of production
and procurement of foodgrains. Even with an estimated marginal
decline in foodgrains production in 2012-13, the requirements for the
Ordinance will be met.
11) It is argued that the Ordinance will dissuade the farmers,
especially the small and marginal farmers, from producing
foodgrains as they will be assured to get highly subsidized
foodgrains to meet their consumption requirements. Your
response?
Production of foodgrains is a means of livelihood for farmers for
which they are adequately rewarded by way of MSP for their produce.
The reach of MSP is expanding every year and in the wake of the
increased requirement for implementation of the Ordinance, more
and more farmers will be brought under the ambit of MSP operations.
Therefore, contrary to dissuading farmers, the Ordinance will in fact
encourage them to produce more.
Access to highly subsidized foodgrains to small farmers on the other
hand will ease the burden on their limited earnings and allow them the
option to spend the money so saved on other necessities and hence
improve their quality of life.
12) States have been complaining about additional financial
burden that the legislation on food security imposes on them.
How will Central Government bring States on board as it is
the States who have to implement the Ordinance?
The main financial implication of the Ordinance would be on food
subsidy. At the proposed coverage and entitlement, total estimated
annual foodgrains requirement is 612.3 lakh tons and the
corresponding estimated food subsidy for its implementation, at
2013-14 costs, is about Rs.1,24,747 crore. When compared to the
estimated food subsidy requirement under existing TPDS and Other
Welfare Schemes, the additional food subsidy implication is about
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Rs. 23,800 crore per annum. This additionality will be borne
completely by the Central Government.
States had expressed their concern about additional burden on them,
especially on account of setting up of grievance redressal machinery
and intra-state transportation of foodgrains, fair price shop dealer's
margin etc. These concerns were based on provisions of the original
Bill, which was introduced in Lok Sabha in December, 2011.
However, taking into consideration the recommendations of the
Standing Committee and views of the State Governments, the
Ordinance now provides that Central Government will provide
assistance to States in meeting the expenditure incurred by them on
transportation of foodgrains within the State, its handling and FPS
dealers' margin as per norms to be devised for this purpose. Further,
with respect to the grievance redressal mechanism, the Ordinance
gives flexibility to State Governments to either set up separate State
Food Commissions or designate an existing Body to exercise the
powers of the Commission.
13) In a Central legislation, how fair is it to put the responsibility
of payment of food security allowance on State
Government?
It is not correct to say that this responsibility is being squarely placed
on States. Such responsibility will lie on States only in case they fail
to distribute the entitled foodgrains or meals after having received the
foodgrains from the Central Government.
Section 23 of the Ordinance provides that in case of short supply of
foodgrains from the central pool to a State, the Central Government
shall provide the State Government with funds for meeting
obligations under the Act. The obligation for paying the food security
allowance to the ultimate beneficiary, under section 8, is however on
State Govts. as distribution of foodgrains/meal as per entitlement will
be their responsibility.
14) How soon the Ordinance is expected to be actually
implemented by States?
Some preparatory work is required before the Ordinance can be
implemented. For example, the actual identification of the
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households, within the coverage determined for each States/UT
under TPDS, is to be done by State Governments, in accordance with
guidelines to be evolved/ specified by them. State Governments will
therefore be required to first evolve suitable criteria for identification
and thereafter undertake the actual work of identification. Allocation
and distribution of foodgrains under the Act can take place only after
the exercise of identification of households is complete. The
Ordinance accordingly provides that State Government shall
complete the identification within 180 days after its commencement.
This period may however differ from State to State and if any State is
ready to implement it early, they will be encouraged to do so.
For the interregnum, the Ordinance contains transitory provisions for
continuation of existing schemes, guidelines etc.
15) Any rights based approach can work only if there is an
independent grievance redressal mechanism. What does
Ordinance provide in this regard?
The law lays down special provisions to ensure effective grievance
redressal. The State Governments are required to:
•
Set up mechanisms, which shall include Call Centres, Helplines
etc.
•
Appoint a District Grievance Redressal Officer (DGRO) who
shall be the first office for complaint.
•
Set up a State Food Commission (SFC) for the purpose of
monitoring and reviewing the implementation of the said law.
The SFC will have the powers of a Civil Court for enquiring into
violation of entitlements and appeals against the DGRO.
•
Formulate Rules outlining the manner and the time limit for
hearing complaints by the Grievance Redressal Officer.
16) Identification of households to be covered is proposed to be
left to States. Every State will adopt different criteria,
leading to a situation of households with same socioeconomic condition getting the benefit in one State but not in
other State. How desirable is this?
The Bill as introduced in the Lok Sabha in December, 2011 provided
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that guidelines for identification will be prescribed by the Central
Government. State Governments during interaction with them
expressed the view that they should have a greater role in determining
the criteria for identification of households. The Standing Committee
also recommended that Government should devise a clearly defined
criteria in consultation with the State Governments. These opinions
and recommendations have been carefully considered. Keeping in
view the wide inter-State variations in the socio-economic
conditions, it was felt that any criteria evolved by the Central
Government for the country as a whole may not properly reflect these
diversities, and therefore invite criticism. It was also difficult to
evolve a consensus with State Government over the issue of criteria to
be adopted. Therefore the work of identification is now proposed to
be left to States, which may develop their own criteria.
17)
How is Aadhar linked to the Public Distribution System
(PDS)?
•
The law has an enabling clause that enjoins the States to use the
Aadhar based technology for PDS reform and to ensure better
identification of beneficiaries using biometric information.
•
Districts such as East Godavari and Hyderabad (Andhra
Pradesh) have already started using Aadhar for online
authentication services under PDS to enable transparent delivery
of ration to eligible beneficiaries. The law allows States to
similarly leverage the mechanism for efficient delivery of
foodgrains.
18) Will the NFSO lead to expenditure close to 3% of GDP?
Reports have appeared in the media that implementation of the
Ordinance will involve expenditure of more than 3 lakh crore or 3%
of the GDP. These estimates are based on erroneous comparisons and
extrapolations. Requirements under NFS Ordinance should be
compared with the existing commitments of the Government for
providing subsidized foodgrains for a meaningful assessment of the
impact of the Ordinance.
Expenditure on subsidy is incurred by the Government on the
foodgrains allocated by it at subsidized prices and the offtake against
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it. Currently, subsidised foodgrains are being made available to 6.5
crore BPL households (including 2.43 crore AAY households) and
about 11.5 crore APL households. While BPL and AAY households
are entitled to receive 35 kgs foodgrains per month, allocation for
APL households is subject to availability, and currently they are
being allocated @ 15 kgs per month in 22 States and 35 kgs per month
in 13 special category States. As per the current coverage and
entitlement, total requirement of foodgrains under TPDS is estimated
at 498.7 lakh tons. If requirement of 65 lakh tons for other food based
welfare schemes such as ICDS, MDM etc is added, the requirement
goes up to 563.7 lakh tons and the corresponding food subsidy
implication is estimated at about Rs. 1,00,953 crore per annum. For
implementation of NFS Ordinance, the estimated foodgrains
requirement is about 612 lakh tons, with associated food subsidy
implication of Rs. 1,24,747 crore, implying thereby an additionality
of Rs. 23,794 crore.
It is not correct to attribute the current levels of food subsidy
expenditure to the coverage and distribution figures derived from
findings of a sample survey and use it as a basis to extrapolate the
implications under NFS Ordinance. The expenditure incurred on
food subsidy is for the total quantity of foodgrains allocated by the
Central Government and offtake against it by States/UTs and not to
household coverage and per family distribution as estimated through
a sample survey. At best, the sample survey points to leakages and
diversions in the public distribution system. Steps are being taken to
check these leakages and the same will be strengthened through
increased use of ICT tools and other means.'
19) It is generally believed that the Public Distribution System
needs a major overhaul. How does the NFSO propose to
address this?
PDS is operated under the joint responsibility of Central and State
Governments wherein the Central Govt. is responsible for
procurement, storage and bulk allocation of foodgrains to States, and
the operational responsibility including allocation within States,
identification of eligible families, issue of ration cards , supervision
over functioning of fair price shops etc. lies with State Govts.
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Accordingly, the NFS Ordinance provides that the Central and State
Governments shall endeavour to undertake necessary reforms in
TPDS such as doorstep delivery of foodgrains; end-to-end
computerization to prevent diversion; transparency; preference to
Panchayats, SHGs, co-operatives in licensing of fair price shops,
management thereof by women/their collectives, etc.
The Department of Food and Public Distribution has already initiated
number of measures to streamline and strengthen Targeted Public
Distribution System (TPDS), some of which are given below.
End-to-end computerization of TPDS operations:
With a view to provide necessary infrastructure and financial support,
the Government is implementing a Plan Scheme on 'End-to-end
Computerization of TPDS Operations' for implementation in all
States/UTs on cost-sharing basis. Under the 12th Plan, total outlay of
Component-I of the scheme is Rs. 884.07 crore, which comprises
activities, namely, digitization of ration cards/ beneficiary and other
databases, computerization of Supply-Chain Management, setting
up of transparency portal and grievance redressal mechanisms.
Digitisation of beneficiary database will help in de-duplication of
ration cards, weeding out the bogus ration card and better targeting of
subsidies. With computerisation of supply-chain, the movement of
foodgrains upto FPS levels can be tracked and the problem of leakage
and diversion can be addressed. Transparency portal will strengthen
the functioning of FPSs and ensure accountability at various levels.
Beneficiaries can also register their grievances through toll-free
numbers and seeks its resolution.
Other steps being impressed upon States/UTs
Campaign by States to review BPL/AAY lists to eliminate ghost
ration cards: As on 31.3.2013, a total of 364.01 lakh bogus/
ineligible ration cards have been eliminated in 28 States:
Door-step delivery of food grains to FPS: Foodgrains to be made
available at the door step of fair price shops in order to check leakages
and diversions. 20 States/UTs have reported implementation of doorstep delivery.
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FPS licenses to be given to SHGs, gram panchayats, cooperatives
etc.: Out of about 5.16 lakh FPS in operation, about 1.21 lakh FPS are
being run by such organizations in 30 States.
Viability of FPS dealers: States have been asked to reassess and
increase the margins being given to FPS dealers. 14 State/UT
Governments have confirmed that FPS in these States are selling nonPDS items such as edible oil, pulses, milk powder, soaps etc.
20) There have been numerous cases of foodgrains rotting due to
lack of storage facilities. What provisions have been made in
the NFS Ordinance to create more storage?
The NFS Ordinance requires Central as well as State Government to
take steps for creation and maintenance of scientific storage facilities
at the Central and State levels. While the Central Government is
expected to create storage facilities for safe storage of stock of
foodgrains in the Central Pool, States/UTs need to create
intermediary storage facilities to be able to store foodgrains at
decentralized locations for meeting the distribution needs.
A. Available storage capacity and steps to augment it
•
The Storage capacity, Covered and Cover & Plinth (CAP)
available with the FCI is 397.02 lakh MTs as on 31.5.2013. The
storage capacities, both Covered and CAP, available with State
agencies for storage of Central Stock of foodgrains is about
341.35 lakh MTs. As a result, a total of about 738 lakh MTs of
storage capacity was available for storage of Central stock of
foodgrains which stood at 739 lakh MTs as on 30.6.2013.
•
The Government is successfully implementing the Private
Entrepreneurs Guarantee (PEG) Scheme to augment the
Covered Storage capacity. This scheme incentivizes private
investment for construction of storage godowns by giving
guarantees to hire godowns constructed under this scheme for a
period of ten years, thereby, ensuring for the investor, a fair
return on his investment.
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•
A capacity of about 203 lakh MTs as on 31.5.2013 has been
approved for the construction of godowns in 19 States out of
which a capacity of 145.06 lakh MTs has been sanctioned for
construction. A total capacity of 71.08 lakh MTs has been
completed under the scheme as on 31.5.2013.
•
For ensuring long-term scientific storage, the Government has
also approved construction of 20 lakh MTs of storage capacity in
silos within the overall sanctioned capacity of the PEG Scheme.
•
The Government has finalized a Plan scheme especially for the
North East, for creation of an additional storage capacity of 5.40
lakh MTs through the FCI, in the next 3 to 4 years. These
capacities once created in the NE region, would take care of the
storage requirements of about 3 to 4 months.
B. Rotting of foodgrains
There is a well established quality control mechanism for scientific
storage of foodgrains followed in FCI godowns for proper storage
and to avoid damage during storage. Department of Food & Public
Distribution has issued instructions to all State Governments/UT
Administration and Food Corporation of India from time to time to
take required measures, for proper enforcement of quality control
mechanism of foodgrains during procurement, storage and
distribution. Some quantities of foodgrains however may get
damaged during storage due to various reasons such as storage pest
attack, leakages in godowns, procurement of poor quality stock,
exposure to rains in case of unscientific storage because of lack of
storage space, floods, negligence on the part of concerned officials in
taking precautionary measures etc.
Due to constant monitoring and follow-up, the accrual of damaged
foodgrains in FCI godowns in absolute quantity as well as in
percentage terms has been declining and is extremely low, as can be
seen from table below.
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Year
Offtake of food grains from
FCI Stocks
(lakh tons)
Quantity
damaged
(lakh tons)
% damaged
foodgrains
2007-08
324.50
0.34
0.10
2008-09
306.20
0.20
0.07
2009-10
371.06
0.07
0.02
2010-11
432.10
0.06
0.014
2011-12
473.59
0.03
0.006
2012-13
552.60
0.03
0.005
12) Leakages in the delivery systems have been noticed all
throughout the chain. How will NFSO ensure a corruption free
system?
Following measures are likely to check leakages and diversions of
foodgrains :
(i)
States/UTs will be required to evolve transparent criteria for
identification of households. Fresh identification of
beneficiaries based on transparent criteria for delivery of
entitlements in a rights based manner, will address the problem
of inclusion and exclusion errors in the present PDS.
(ii) Measures such as end to end computerisation of PDS operations
will also help in checking the leakages and diversion of
foodgrains
(iii) The NFS Ordinance provides for grievance redressal authorities
at the District and State levels to enforce the entitlements and
investigate and redress grievances of beneficiaries. The State
Food Commission will also have powers to impose penalty.
22) How can Congress Party workers help in the effective
implementation of this law?
•
All Congress Party workers should undertake exercises to ensure
wide spread dissemination of this law and its clauses. This can
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be done through wall paintings that list the salient features of the
law.
·
They should ensure that the people are aware of the benefits
promised by the Central Government and the obligations that
have been placed upon the State Governments.
·
Partyworkers should be vigilant in ensuring that the State
Government discharges its obligations under this Act and also
help expedite its implementation.
·
They should also undertake BPL list “Vaachan” (reading) which
will help identify beneficiaries whose names are missing and
would need to be added to the list and deleted if need be, when
they are updated.
·
The Partyworkers must, in addition to disseminating
information about the law, assist the administration in the
expeditious identification of the priority households as also in
the overall implementation of the law.
·
Partyworkers should be vigilant and ensure that the
administration carries out the necessary reforms to the Targeted
Public Distribution System in a time bound manner.
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Quick Responses
Benefits to Citizens
Who is eligible for the entitlements?
The Food Security Ordinance divides the eligible households into
two categories.
i) Priority Households
ii) Antyodaya Households
Priority households are entitled to receive 5 kilograms of foodgrains
per person per month at subsidized rates (see below).
Antyodaya households are entitled to 35 kilograms of foodgrains per
household per month (see below).
The entitlements are expected to cover 75 percent of the rural
population and 50 percent of the urban population.
What food entitlements will the beneficiary receive and how
much will the beneficiary have to pay?
The beneficiary will receive rice, wheat and coarse grain. The
subsidized rates as specified under the Schedule I of the Ordinance
are
Rice
- Rs. 3/ kg
Wheat - Rs. 2 / kg
Coarse grains- Rs.1 / kg
As per the Ordinance, the prices would be frozen for a period of three
years, after which they MAY be revised.
What is a household? How will eligible households-Priority and
Antyodaya- be identified under the Ordinance?
In 1971 Census a household was defined as 'a group of persons who
commonly live together and would take their meals from a common
kitchen unless the exigencies of work prevented any of them from
doing so'.
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Under the Ordinance, the Census population estimates will be used
by the central government to determine the state-wide coverage of the
PDS and the rural-urban population proportion.
The state government is given the responsibility of identifying the
total number of eligible households as done before under TPDS. But
it is also empowered with specifying the criteria for identification of
'priority' households. This means the 'priority households' may differ
from state to state.
It is up to the State Governments to determine the mechanism for
identifying the priority households. If they wish, they may use the
Socio Economic and Caste Census, which is supposed to rank rural
households on a scale of 0 to 7. After ranking households, a cut-off is
supposed to be applied to identify 'priority' households as the main
beneficiaries of the proposed National Food Security Ordinance.
What is the Antyodaya Anna Yojana (AAY) scheme?
In order to make Targeted Public Distribution System (TPDS) more
focused and targeted, the 'Antyodaya Anna Yojana' (AAY) was
launched in December, 2000 for one crore poorest of the poor
families, to be identified from amongst the BPL families covered
under TPDS. It is estimated that 5% of population are unable to get
two square meals a day on a sustained basis throughout the year. Their
purchasing power is so low that they are not in a position to buy food
grains round the year even at BPL rates. It is this 5% population (5
crores of people or 1 crore families) which initially constituted the
target group of Antyodaya Anna Yojana. Subsequently extemded to
cover 2.5 crore households.
AAY provides them food grains at a highly subsidized rate of Rs.2/
per kg for wheat and Rs. 3/ per kg for rice. Allocation to each
Antyodaya household is 35 kg per family per month The States/UTs
are required to bear the distribution cost, including margin to dealers
and retailers as well as the transportation cost.
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How are Antyodaya families identified?
The identification of the Antyodaya families and issuing of
distinctive Ration Cards to these families is the responsibility of the
concerned State Governments. The focus on the following priority
groups has been enshrined in the scheme:
a)
Landless agriculture labourers, marginal farmers, rural
artisans/craftsmen such as potters, tanners, weavers,
blacksmiths, carpenters, slum dwellers, and persons earning
their livelihood on daily basis in the informal sector like porters,
coolies, rickshaw pullers, hand cart pullers, fruit and flower
sellers, snake charmers, rag pickers, cobblers, destitutes and
other similar categories in both rural and urban areas.
b)
Households headed by widows or terminally ill
persons/disabled persons/ persons aged 60 years or more with no
assured means of subsistence or societal support.
c)
Widows or terminally ill persons or disabled persons or persons
aged 60 years or more or single women or single men with no
family or societal support or assured means of subsistence.
d)
All primitive tribal households
e)
All eligible BPL families of HIV positive persons in the AAY list
Where can a beneficiary collect his/her food entitlement from?
The beneficiary can collect his/her food entitlement from the Fair
Price Shops maintained under the Targeted Public Distribution
System (TPDS) of delivery.
Are there any benefits for special groups?
The Ordinance proposes meal entitlements to specific groups. These
include: pregnant women and lactating mothers, children between
the ages of six months and 14 years.
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Group
Entitlement
Priority
5kg foodgrains per person per month at Rs
3/kg for wheat, Rs 2/kg for rice, and Rs 1/kg
for coarse grains
Antyodaya
35 kilograms of foodgrains per household
per month at Rs 3/kg for wheat, Rs 2/kg for
rice, and Rs 1/kg for coarse grains
Pregnant women
and lactating
Meal during pregnancy and 6 months
thereafter through the local anganwadi, and
maternity benefit of mothers not less than Rs
6000 in instalments
Children, 6 months Free age appropriate meal at local anganwadi
to 6 years
Children, 6 to 14
Mid-day meal at school years
What happens if the beneficiary doesn't receive his/her food
entitlement?
The Ordinance has provisions for food security allowance, to be paid
to each person in case of non-supply of the entitled quantities of food
grains or meals. In the case of non-supply of foodgrains or meals to
persons entitled under the Ordinance, such persons shall be entitled to
receive a food security allowance from the state government.
Are there any special benefits for women?
Along with the maternity benefits listed above, the Ordinance also
takes an important step towards women empowerment. By according
the eldest woman who is not less than eighteen years of age, as the
head of the household for the purpose of issue of ration cards.
How is this women empowerment?
Empowering women as the head of the household would provide a
positive impetus in lowering intra-household inequities/
discrimination.
If the ration card is issued in the name of the eldest women, any cash
allowance would also be issued in her name. This would place her in
direct control of the money and allow her to take play a role in
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decision making in her household and in improving the nutritional
status of her children and family.
What support will the states receive to ensure the supply of
foodgrains?
For inter-state food supply and transportation, the states will receive
financial support from centre. This will ensure timely supply of
foodgrains to the people. There will be electronic mechanism and use
of Aadhar card to identify the beneficiary.
Are there any provisions to ensure transparency and reduce
corruption?
The Ordinance provides for transparency provisions like
1. Placing of all PDS related records in the public domain for
inspection
2. Social audits on the functioning of fair price shops, PDS and
other welfare schemes
3. Vigilance committees at state, district, block and fair price shops
to supervise all schemes under the Act
4. Use of ICTs (Information and Communication Technology) to
ensure transparent recording of transactions at all levels
What is the Grievance Redressal Mechanism under this
Ordinance?
Every state is required to put in place an internal grievance Redressal
mechanism. This includes appointment of a District Grievance
Redressal Officer for speedy and effective Redressal of grievances of
the aggrieved persons in the matters relating to distribution of entitled
foodgrains or meals. In addition, there will be a state level grievance
redressal mechanism through the State Food Commission.
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Criticisms and Their Answers
1.
Are the deserving excluded? Are the undeserving included?
The Ordinance covers upto 75 percent of the rural and upto 50
percent of the urban population which has reduced the chances of
exclusion of the deserving. It is upto the State Governments to
identify the people needing food security. The Socio-Economic and
Caste Census may be used to identify the beneficiary as a broader
method of identification.
2. Are there better policy alternatives?
Currently the Public Distribution System is the only functional
scheme which provides food security to the poor. The PDS system
has been criticized in the past for huge amount of waste and leakages.
The National Food security Ordinance seeks to improve upon the
PDS system and necessary checks have been put in place. If
implemented well, the Food security programme can prove to be one
of the most effective policies in ending hunger.
3. Why rush with an ordinance weeks before Parliament? Is
this subverting the democratic process for political gain?
The opposition's constant disruption of Parliament and the failure to
help passage of the Food Security Bill forced the government to go in
for an ordinance to give the country's two-third population the right to
foodgrains at subsided rates.
4. Is this an election gimmick?
No it is not an election gimmick. The opposition has not allowed the
discussion on the Bill to happen for the last sessions which has
delayed the passage of a crucial Bill. This was also promised in the
INC election manifesto, 2009.
5. Don't some states have better schemes? Will people in those
states lose out?
States such as Tamil Nadu, Chhattisgarh and Kerala which are
already providing food grains at cheaper rates than the Rs 3-a-kg rice,
Rs 2-a-kg wheat and Re 1-a-kg coarse grains entailed by the central
scheme could continue with their existing schemes and still avail of
the additional subsidy that the food security act would entail.
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Are there any examples of successful food security initiatives
in other countries?
Various developing countries have launched successful food security
programmes. Brazil's Zero Hunger programme and Mexico's
Progresa-oportunidades Human Development Programme have
been quite successful in combating hunger in the respective
countries. Drawing inspiration from the Brazilian programme, Egypt
also launched a US $2 billion programme for a food insecure
population.
7. What will be the impact of the scheme on agricultural
production?
Currently, production and availability of foodgrain for implementing
the Food security Bill does not appear to be an issue. India has bumper
crops every year 259.32 million tonnes in 2012-13 and has an
enormous buffer stocks. India has to improve its storage facility
enormously. The small farmers need to be incentivised more, so that
they continue to produce and add to food production.
6.
8.
Why were the standing committee recommendations not
accepted?
Most of the recommendations of the Standing Committee were
accepted. The other recommendations have been improved upon in
the ordinance. The provisions for pregnant women and children also
have been drastically improved.
9.
Why does the Bill not aim at universal coverage for
subsidised food?
The Department of Food and Consumer Affairs noted that the average
annual procurement of foodgrains during 2007-08 to 2011-12 has
been about 60.24 million tons. In comparision, the foodgrain
requirement for covering the whole population under TPDS, even
with an entitlement of 5 kg per person per month, is estimated at 72.6
million tons. Requirement for OWS would be additional. It is not
feasible to meet such a high level of foodgrain requirement at the
current levels of production and procurement.
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10. What would be the impact of the ordinance on the farmers?
Production of foodgrains is a means of livelihood for farmers for
which they are adequately rewarded by way of MSP for their produce.
The reach of MSP is expanding every year and in the wake of the
increased requirement for implementation of the Ordinance, more
and more farmers will be brought under the ambit of MSP operations.
Therefore, contrary to dissuading farmers, the Ordinance will in fact
encourage them to produce more.
Will the Direct Cash Transfer Scheme replace or reduce
TDPS ?
11.
No. The Direct Cash Transfer Scheme is not intended to substitute or
replace the TDPS.
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