Cabinet clears revised food Bill

Likely in Parliament this week; FoodMin draft accepted without changes; CCEA defers decision on levy sugar

The Union Cabinet today cleared the revised and much-discussed National Food Security Bill (NFSB), paving the way for its introduction in the ongoing Budget session of Parliament.

If enacted, this would provide a legal entitlement for cheap grain to about two-thirds of India’s population, at five kg monthly for each person. Rice will be provided at a uniform Rs 3 a kg (market price over Rs 20 a kg), wheat at Rs 2 a kg (market price Rs 16 a kg) and coarse cereals at Re 1 a kg.

Existing benefits under the Antyodaya Anna Yojana (AAY), which targets the poorest among the poor, would remain as these are. (FOR A FULLER STOMACH)

Also Read: India's 2013-14 total food subsidy stands at Rs 1,30,000 cr

In the original Bill, introduced in the Lok Sabha in December 2011, the Centre had proposed seven kg of rice or wheat or millets a month for the priority category at Rs 3, Rs 2 and Rs 1 a kg, respectively. And, three kg for each person a month for general category households, at 50 per cent of the support price.

Separately, the Cabinet Committee on Economic Affairs decided, said officials, to defer a decision on doing away with the levy sugar mechanism. This is expected to be on the agenda of its next meeting. Under the mechanism, private millers have to sell a specified quantity of the sweetener to the government at concessional rates.

The revised version of the NFSB incorporates amendments to the previous one as suggested by Parliament’s standing committee on food. The panel had suggested 55 amendments and most of these were accepted by the department of food and consumer affairs. “The Bill was cleared with all the changes (we) suggested,” Food Minister K V Thomas told reporters.

When fully implemented, it will cost the exchequer around Rs 131,000 crore, as against the 2013-14 food subsidy allocation of Rs 90,000 crore. About 62 million tonnes of foodgrain would be required. “We will manage the subsidy component,” said Thomas.

The revised Bill removes the distinction in the earlier one between below poverty line (BPL) and above poverty line (APL) families. The standing of committee of Parliament had suggested abolishing the AAY category as well, along with APL and BPL, to which the food ministry did not agree.

Nationally, 75 per cent of the rural population and 50 per cent of the urban one would now be covered. Under this broad definition, NFSB seeks to give flexibility to states. “The beneficiaries would be decided by state governments, while the criteria to exclude 33 per cent of the population would be provided by the Planning Commission,” said Thomas.

Earlier, a uniform exclusion criterion was proposed but the chief ministers of states such as Bihar, Chhattisgarh and Uttar Pradesh had written to the Prime Minister for more flexibility.

The Centre is to also provide financial assistance to states for meeting the expenses of transportation, handling of foodgrain and margins to ration shops dealers. To provide nutritional security to women, the Bill has been amended to specify payment of at least Rs 6,000 as maternity benefit, in instalments to be decided later. Earlier, it was Rs 1,000 a month for six months.