FAQ: Food Security Bill

How it started, who gets what, how is it different? Read it all over here

The beginning

* Drafted by the Sonia Gandhi-led National Advisory Council in 2010, the Bill originally proposed legal food entitlement for 75% of India’s population

* A panel led by C Rangarajan recommended lowering entitlements and reforming PDS

* In Sep 2011, the food ministry circulated a draft report for public comments

* In July this year, the govt brought an ordinance covering 67% of the population

Who gets what

* 75% of rural and 50% of urban population — an estimated 800 mn people — are to receive 5 kg of wheat, rice and coarse cereals at Rs 3, Rs 2 and Rs 1 a kg, respectively

* The Bill doesn’t include pulses and edible oils, as the country lacks supply of these

Impact on agri sector

* As the govt will procure more grains, farmers might be dissuaded from growing cash crops

Difference from PDS

* The present PDS system does not have the legal umbrella

* The legal entitlement in the Bill provides beneficiaries the right to take the govt to court if they are denied the service

Implementation

* For now, the govt proposes to implement it through existing system of ration shops

* Later, it could be shifted to a modernised PDS that works on biometric ration cards

Why not universal?

* The grain required to cover the whole population is estimated at 77 mt, while the govt’s annual procurement has averaged around 60 mt

The cost involved

* The govt’s food subsidy bill will rise from the present Rs 90,000 crore to over Rs 130,000 crore

* Besides inflation fears, the rise in subsidy bill could affect govt’s ability to contain its fiscal deficit at 4.8% of GDP