Monday, July 30, 2012

Policy-FOOD SECURITY BILL: STRUCTURAL BOTTLENECKS

Though The Food Security Bill has been finally approved by a Group of Ministers to be presented before The Parliament, what might finally take shape as The National Food Security Act is being questioned. Will the entire idea of food security for all fructify?

To be fair to NAC, the purpose of the legislation on food security, which was earlier an exclusive premise of the NAC, actually lost its teeth soon after government bodies got involved in the process.

Debates began that unfortunately led to the NAC succumbing to political pressure. The whole case of ensuring ‘food for all’ was lost. However, there are still a few positives that emerge from this forward movement, says senior economic expert Suvrokamal Dutta. “Even if the legislation was to be approved in the current form, something which looks very unlikely, it is a big leap ahead. I agree there is a lot more that is to be done in this front... but target groups need to be clearly defined, and there should be a pan-India survey conducted for this purpose. The targeted PDS could prove as a bottleneck for the government while implementing the NFSA. Still, it is a significant move ahead,” he says.

Expecting NFSA to deliver the originally desired results is being too optimistic. But as said, the fact that there is a definite intent within the government to move along the philosophy of food for all, is itself one of the most noteworthy commitments of the political class.

Still, the politicisation of critical issues and the effects thereon, have started to show already. Just before the beginning of the Monsoon session of the Parliament, Food Minister K. V. Thomas declared that it was unlikely that the Bill would be introduced in the current session, adding that it would now be introduced in the winter session, extending the deadline for its implementation to sometime next year. With food inflation rising worldwide, experts are already worried not only about the delay in the bill, but also the funding required to support the same.

Many state governments will look to sort out their differences with the Bill, which is also set to take time. Even if the government is able to push the Bill through in the winter session, it’s not quite clear right now on how the project could include self-sustainability. In summary, it’s a great promise that has been shown to the Indian populace, yet it’s actual implementation remains a distant dream.

Draft dilutes existing entitlements

B&E: What are your major concerns regarding the Food Security Bill? Do you think the proposed legislation in its current form can attend to the food-for-all idea?
JD: The government’s draft of the proposed National Food Security Bill – apart from ignoring the demands of the entire right to food campaign – has junked many provisions of the draft prepared by the National Advisory Council and has also diluted the existing entitlements. The entire draft has been written with the objective of minimising obligations and restricting the extent and reach of the Bill. In fact, it makes a mockery out of the idea of food security for all.

B&E: The extent of beneficiaries of the proposed bill is an issue of concern. Your views on the proposal of legal entitlement to food grains only to priority households.
JD: It is the framework that is problematic. First, it hinges on a lasting division of the population into three groups, without any clarity as to how the groups are to be identified. In the absence of any obvious alternative, the NAC is effectively falling back on the BPL census to identify priority groups. This is a major setback as the NAC’s entire work began with a virtually unanimous rejection of BPL-based targeting for the PDS. Exclusion errors in earlier BPL censuses were very large, and the next BPL census is unlikely to fare much better, judging from the pilot survey. Also, the issue here is not just of the priority groups. There are millions of households which will receive no benefit at all.

B&E: PDS in India has been an area of concern. Do you think the system will be able to deliver? Can the Planning Commission’s view of adopting a system of cash transfers instead of providing subsidised food grains prove to be a good idea?
JD: I think the issue is a little different here. I agree that there is tremendous scope for PDS to improve in India. Having said that, a survey that we recently conducted covering over 100 villages across nine states, indicated an impressive revival of the PDS across the country. In fact, we have found that the PDS has become a lifeline for millions of rural households. However, the other side of the story is that the BPL list on which the benefits of the PDS are based on, is very defective. There are huge inclusion errors, which has severely reduced the effectiveness of the PDS as a tool of food security.

B&E: What other concerns do you have regarding the Bill?
JD: The Bill is set to go to the Parliament for discussion. So, I would not like to comment on what it would come out as. However, there are many provisions of the NAC that were later diluted, which is unfortunate. Still, I believe certain modifications could help the cause. First, the idea of a universal PDS in the poorest 200 districts could easily be reinstated by waiving exclusion criteria in these districts for an initial period. Second, the Act could be gradually extended to the whole country, over a period of, say, three years, starting with the poorest 200 districts. This will make it easier to meet the additional foodgrain requirements in a phased manner throughout India.