Food Security Bill

The passing of the Food Security Bill in both the houses of the Parliament is a great achievement of the Congress Party, especially to its President Mrs. Sonia Gandhi. But it is wishful to think that it will  fetch more votes in the  2014  election to the Lok Sabha.

The Bill aims to provide subsidised food grains to around 67 percent of  India's 1.25 billion people.  As per the provisions of the bill, beneficiaries would get rice at Rs.3/kg, wheat at Rs 2/kg, and coarse grains at Rs 1/kg. These rates would be valid for three years. Every pregnant woman and lactating mother would get free meal during pregnancy till six months after child birth. They will also get a maternity benefit of 6,000 in installments. Children up to 14 years would get free meals. In case of non-supply of food grains, states will have to pay food security allowance to beneficiaries. The Bill was passed with rejecting more than 300 amendments in Lok Sabha on 26 August 2013 and Rajya Sabha on September 2, 2013.

The common opinion is that while the Food Security Bill will be a great boon to the beneficiaries, it would be a big burden on the economy. The Food Security Bill is indeed recognition of the fact that even after more than 6 decades of planned economic development a vast majority of the people are unable to meet their daily minimum food requirements. Although the country has achieved remarkable growth in output and income, a greater proportion of the benefits of economic development have gone to a small section of the population. In fact, it is the outcome of growing inequality in the distribution of income and wealth due particularly to the pro-rich policies pursued by the government in the name of economic reforms ( i.e.  liberalisation and globalisation) especially since 1991.

A vast majority of the people are unable to buy enough food grains and other essential requirement due to lack of income. These people are unable to earn adequate income for their sustenance due to their inability to get gainful employment opportunities with enough income. That is, we have not been able to provide gainful employment opportunities to millions of people. Had we been able to provide gainful employment opportunities to all the job seekers, the question of food security would not have arisen. Economic development has no meaning except in terms of better employment and higher wages. Moreover, no individual will desire to live on charity either by the government or by private organisations/individuals. Everyone wants to lead an honourable life with better employment and higher wages.

Therefore, provision of food security is only a stop-gap arrangement. In the long run the country cannot afford to supply food grains to a vast majority of the people at subsidised rates or free of cost. It is not improper or impossible for the Government to raise nearly Rs.1.2 lakh crore rupees needed for ensuring food security under the Food Security Act (2013). The claim that  the passing of the Food Security Bill will accentuate fall in the value of Indian rupee against American dollar or depress market sentiments is unfounded.  But diversion of such a vast amount for unproductive investment in ensuring food supply to individuals is a definitely a burden on the economy year after year. In the long run the investment in ensuring food security may be productive in terms of better health of the people. But in the short run it is a great burden on the economy. The diversion of such a huge amount will entitle   dearth of funds for other sectors such as infrastructure, education, health and housing, which will lead to further deterioration in these spheres.