An experts group set up by Prime Minister Manmohan Singh to look into recommendations of National Advisory Council on Food Security Bill in its first meeting on Friday has asked for more information from agriculture ministry and ministry of food supplies on the feasibility of the NAC recommendations. Chaired by C Rangarajan, chairman, PM?s economic advisory council, the group includes the member-secretary of the Planning Commission Sudha Pillai, chief economic advisor Kaushik Basu and the secretaries of food, agriculture and expenditure. Even as the NAC is formulating the draft Bill, the experts group has been asked to examine the proposals and come up with its suggestions.
The food security bill says that every BPL Family would be entitled to food grains such as rice and / or wheat at subsidised issue prices fixed from time to time. The food grains will be made available under a Targeted Public Distribution System to be jointly implemented by centre and states.
The NAC chaired by UPA president Sonia Gandhi has recommended that legal entitlements to subsidised food grains be extended to at least 75% of the population, which means, 90% population in rural and 50% in urban areas. In the first phase, this entitlements should be extended to 85% of the rural and 40% of the urban population. Full coverage should be extended to March 31, 2014.
The expert panel has asked for details from agriculture ministry on the current production capacity considering the unpredictable nature in monsoons. The panel also stressed on ways to address the existing leakages in the public distribution system, a government official with direct knowledge told FE. The production capacity is a big concern to implement this ambitious plan.
The NAC has suggested that ?priority’ BPL homes (46% in rural and 28% in urban areas) should have a monthly entitlement of 35 kg of subsidised food grains at Re 1 per kg for millets, Rs 2 for wheat and Rs 3 for rice. The ?general’ (Above the BPL) households (44% in rural and 22% in urban areas) should have a monthly entitlement of 20 kg at a price not exceeding 50 per cent of the current minimum support price for millets, wheat and rice.
Key ministries have raised concerns on the subsidy burden on the centre which will significantly increase due to food security. The next meeting of the panel scheduled after ten days will give more clarity on the feasibility of NAC’s recommendations. The report once prepared will be discussed by the empowered group of ministers headed by finance minister Pranab Mukherjee before it can be tabled in Parliament.