Food ordinance has controversial force majeure clause

Clause empowers both Central and state govts from their obligation to provide subsidised food in the event of war, flood, drought, fire, cyclone or earthquake

The government included much-debated 'force majeure' clause in the Food Security Ordinance, despite opposition from civil socieity and a Parliamentary standing committee.

However, the clause can now only be invoked if the Central government in consultation with the Planning Commission decides as to whether such a situation has arisen that can warrant the stoppage of supply of grains.

 

According to a senior official, in all other conditions of emergency, Centre and State governments will be liable to distribute food grains at subsidized rates to all entitled beneficiaries as their legal right

 

The clause empowers both both Central and state governments  from their obligation to provide subsidized food in the event of war, flood, drought, fire, cyclone or earthquake.

 

The force majeure clause has long been a bone of contention between the government and a section of the civil society, who wanted it to be excluded as it meant the absence of government’s welfare measure at a time when it was most needed. 

 

The Standing Committee of Parliament, which had studied the Ordinance and suggested some major changes, had also recommended dropping of this clause. The official said the clause was already diluted in the government’s revised draft Food Security Bill that was tabled in Parliament during the Budget session, and this has been incorporated in the Ordinance. 

 

The Food Security Ordinance which was promulgated last week will provide legal entitlement for cheap grains to almost 67 per cent of the India population. It will provide wheat, rice or coarse cereals at the rate of Rs 3, Rs 2 and Rs 1 respectively. 

 

However, the ordinance in its proper form could be implemented after six months as state governments will have to identify the eligible households who will be entitled to the grains under the Ordinance. “The state-wise cut offs of beneficiaries will be determined by the Planning Commission,” a senior official explained.

 

Till this process is completed, states will continue to get the current allotment of food grains under Targeted Public Distribution System Prices of Rs 4.15 per kg for wheat for Below Poverty Line (BPL) families and Rs 5.65 per kg for rice for BPL families.

 

Officials in the know said that the ordinance also empowered the Central government to make any provisions to remove difficulties arising in implementing the scheme, but such provisions should not violate the basic principles of the Ordinance. 

 

Also, all such orders to change the provisions of the Food Security law will have to be done within two years of the promulgation of the Ordinance, which was last week.

 

The ordinance is expected to cost the exchequer around Rs 1,25,000 crore in a year once it is fully implemented in the country. The 2013-14 Budget provided Rs 90,000 as food subsidy.

 

Pointers

 

a)      Force majeure clause to be invoked only if Centre in consultation with Planning Commission decides to do so.

 

b)     Government Liable To Supply Grains In All Other Emergency Situation.

 

c)      Government Retains Right To Make Alterations In the Ordinance To Remove Implementation Difficulties.

 

d)     But, no change should alter the basic structure of the ordinance.