Food security is made up of four pillars viz. Bibek debroy economic times forex security Pillar What has India done to achieve it? Together, they encourage farmers to produce more grains. Government provides cheap grain to poor.
Government ensures nutritious food to children. It can be sold to open market or distributed among people during high inflation, natural disaster etc. Our domestic wheat-production was very low. Our foreign exchange reserve too was very low. We could not sustain wheat-import from global market from our own.
Mexico, distributed them to farmers along with subsidized fertilizers. You can read more about its features, phases and limitations in NCERT Class 11 Economy, page 24 onwards. But it fails to curb the nuisance of middlemen, hoarding and inflation. FCI falls under Ministry of consumer affairs, food and public distribution.
FCI was ordered to buy grains from farmers, at this price, IF farmer couldn’t sell his produce in open market. 23 crops before each Rabi and Kharif Season. 24 agro-commodities covered under public procurement system. Now on behalf of FCI, the respective state governments themselves will procure foodgrains from farmers and distribute them among poor beneficiaries. In theory, this ought to reduce transport cost and leakages but very few states adopted it, that too for rice only. Two tier pricing structure: BPL and APL. State Governments decide BPL and APL based Planning commission guidelines.
Antyoday Anna Yojana: 25 kg foodgrain per family at the rate of Wheat Rs. Act, asks state governments to adopt it. Although many states yet to implement. Under this scheme, new godowns will be constructed on PPP finance, FCI will hire private godown to store public-procured food grain for contractual period of 10 years. EPICFAIL Because Urea not covered in this system. A new statutory body- Warehouse Development and regulatory authority under consumer affairs ministry.
This includes even non-food crops such as cotton and jute. Of Indian farmers could sell their produce to Government agencies. Other farmers are either unaware, or lack the access to MSP-system. FCI transports 25 lakh gunny-bags every day so imagine the scam! For the last 4-5 years, FCI has stored double the grains than prescribed buffer limits. Was the food-inflation in recent years, YET Government did not release grains from its FCI-warehouses to increase supply and curb inflation. Of subsidized foodgrain doesn’t reach BPL families.
States have so far implemented food security act. Haryana, Delhi, Himachal Pradesh, Rajasthan, Punjab, Karnataka, Chhattisgarh, Maharashtra Chandigarh, Bihar and Madhya Pradesh. Other states are given time extension because they’re yet to even identify the beneficiaries. Is the number of agriculture households in India. 4th of them not even aware of MSP system. Procurement Large number of farmers are out of the MSP regime.
Distribution Targeted PDS system has unacceptably high leakages. Plus, 6 members whose names not important for exam. How to reform public procurement, food storage and distribution? Duration Setup in 2014-August, gave report in 2015-January. Issues relating to poverty and hunger. These state Governments already have sufficient experience, manpower and infrastructure to procure grains for their own PDS requirements. In the States, Market rate are below MSP.
State governments are inept and lack infrastructure to procure grains from the farmers in a transparent and efficient manner. So FCI should simply hand over operations To the state governments under decentralised procurement system. For short-term, give them technical training and arrange them finance through ADB-IFC etc. FCI itself Procure grains from the states, until the situation improves. Encourage farmer to deposit his produce to an authorized-warehouse, get a receipt, and borrow agriculture loan for next crop-cycle, from banks and cooperatives, by pledging those receipts. MSP x quantity stored in warehouse. FCI should not procure more grain from that state, once buffer stock quota is filled.