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Monday, 26 August 2013

All About Food Security Bill

11:58 Posted by vijay pasham No comments
                Today 26th of august 2013 Indian parliament passed one of biggest schemes in the world in terms of quantity of food, people covered and money involved.

What is Food Security Bill??

The Food Security Bill is a bill for consideration before the Government of India. The bill aims to provide subsidised foodgrain to around 67 percent ofIndia's 1.2 billion people.
As per the provisions of the bill, beneficiaries would get rice at INR 3/kg, wheat at INR 2/kg, and coarse grains at INR 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 INR 6,000 in instalments. Children up to 14 years would get free meals. In case of non-supply of foodgrains, states will have to pay food security allowance to beneficiaries. Source

So now we have questions like
  • How useful is the Food Security bill for India?
  • Is the Food Security Bill good?
  • Does the food security bill make sense, economically?
As discussed above security bill says about Food Security for everyone who belongs to Priority Households,… They will be received or secured with 5Kg of foodgrains everymonth.
“Priority Households” shall mean those households identified by the State Government as being in the priority group based on the identification criteria notified by the Central Government for the grant of food grains at rates given in Section 23 of this Act.  (NAC FSB 2:gg)
People in priority household include ~67% of population of India, which is 831,470,000 (~831 Million People).

Now lets calculate if everyone are served with all food grains.

just to take an average price. which would be Rs2/Kg of food grain.
Total foodgrains distributed under the Food Security Bill in a year = 831 Million * 5 Kg/month * 12 Months ~ 49.9 Billion Kg
Taking average market price of foodgrains to be Rs20/Kg
People are paying Rs 2/Kg
Government subsidy = Rs 18/Kg
(excluding the money spent on the delivery system of the foodgrains, which would be significant considering the fair price shops and targeted public distribution system doesn't have current penetration to the 67% population of India)
Total subsidy for the entire year = Rs 18/Kg*49.9 Billion Kg = Rs. 898 Billion
Now in this case we have excluded some overhead costs,
Now consider this, during the year 2011-12 total food subsidy was Rs 720 Billion for 45% people at subsidised rate of Rs 5.5/Kg and average foodgrain per person being 2.1Kg
If we do similar calculations for 2011-12 it, calculated subsidy comes out to be Rs200 Billion which is only 27% of the actual subsidy, if you inflate the 898 billion by same amount,
Spending on FSB is estimated to be at 1.25 Crore INR to GDP of India which is at 1.842 trillion USD, implies 1.055 % of the total GDP of India.and in 2014 comes out to be
Rs 3300 Billion which is 2.9% of our GDP and more than 3-4 times the previous year and it cont….

So will this helps india? Yes for needy ofcourse, But i question instead creating jobs or better employment why does govt  give things free?? wont these type of schemes make people lazy with sufficient food with very low price? Any form of subsidy to prove suicidal for our country.  Why would poor people work laboriously if they will be fed by the govt. at low prices?? INDIAN Economy can’t afford it and ofcourse dont forget our corruption kings, There is corruption every level very less chances it to be implemented properly.

The only aim of this bill is to get votes and only votes.


P.S.2: I hate freebees or giveaways this will make people lazy they bury their skills, hardwork, and often give way to alcohol,drugs and with anti-social activities,,..

Have that sort of energy, that sort of will, work hard, and you will reach the goal.



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