Friday 5 July 2013

Ordinance for Food security

The ordinance for Food Security has been signed by the President, making it into law. It still has to come to Parliament to to be approved. Now 67% of the people of India have food security. Food will be given at extremely subsidised rates, so that the poor can afford it. Five kilo grams per month for each individual at the nominal rate of three Rupees per kilo grams of rice/wheat.  When the granaries and storehouses are overflowing with bumper harvests, year after year, we must give the excesses away. 50000 tonne of grains spoil each year because of lack of storage space. It is was highly debated whether this would affect the economy of the country negatively. Farmers who had spent much in order to make the grains would feel that their produce has little value (it is almost free). Cost of other items like vegetable, lentils and cooking oil would go up, as they are not free or subsidised by government. Further production will have to be monitored, as farmers may not be interested in growing grains now. Support price will be given to the farmer. 25000 crores of Rupees will be spent by the government each year to feed 67% of the population. If huge expenditures are made by government for this scheme, we may go bankrupt. Food must be made affordable, but not free. Once people become dependent on this free scheme, it will be difficult to unshackle them from this kind of dependency on the government. Will all that is allocated reach the masses? As it is PDS (Public Distribution Scheme or "ration shops")  only deliver 50% of that which is allocated. There are too many leakages due to which allocated funds do not reach the people. The ordinance will take effect in six months. But can we really give away food for free without affecting the economy? If so for how long can we give? Not for ever. To feed the hungry people is most urgent now, we will tackle whatever which comes from it later.

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