The Sonia Gandhi-led National Advisory Council (NAC) meets once again on Wednesday in the span of less than a fortnight to firm up the broad contours of the contentious National Food Security Bill. However, it is unlikely that the proposed legislation would provide for universal entitlement.
The NAC had last met on July 1 to discuss the proposed legislation during which members were divided over the crucial issue of universal entitlement versus limiting allocation only to below poverty line persons.
On two other contentious issues — the quantity to be allocated and the price at which grains will be made available — the NAC appears to be in general agreement on 35 kg per month of wheat or rice while it is likely to maintain flexibility on the proposed issue price of Rs 3 a kg.
Though the Planning Commission estimates put the count of BPL persons at around 8.3 crore in 2010, up from 6.5 crore in 2005, it is the NAC that will take a final call on the number of beneficiaries under the proposed law. Sources said that universal entitlement is practically impossible, given the limitations of foodgrain procurement and the huge subsidies involved.
Foodgrain procurement in the country has been around 50 million tonnes over the past three years but implementation of an ambitious law like the food security act would require around 100 mt for PDS to be universalised.
This will not only add to the government’s already huge food subsidy bill but also upset the open market purchase carried out by private players. The current food subsidy bill is around Rs 72,000 crores.
In view of the proposed legislation, agriculture minister Sharad Pawar told the food secretaries of states during a conference on Tuesday that improving agricultural production, procurement and storage of foodgrains are the big challenges before the government keeping in mind the food security bill.
At present, the TPDS provides subsidised rations of 35 kg per month to around 6.5 crore BPL families in the country.