Cabinet clears food security via ordinance Govt Set To Woo Aam Admi With 5Kg Foodgrain A Month

New Delhi: The Union Cabinet on Wednesday cleared an ordinance to implement the politically significant national food security bill without waiting for Parliament's monsoon session, which is about a month away. 

    The decision to press ahead with the ordinance—delayed after the government sought to garner political support for the bill—is rooted in the Congress's determination to project its commitment to food security as a key aspect of its 2014 campaign. Once the ordinance is signed into law by President Pranab Mukherjee, it will be incumbent on the government to provide 5kg of subsidized rice and wheat to 67% of the country's population. 
    Seen to have Congress chief Sonia Gandhi's backing, the government's decision to emboss political stamp on the law is intended to reiterate the party's commitment to a a m a d m i. 
    Read with initiatives like the Aadhaar-linked transfer of subsidies and benefits to the socio-economically disadvantaged, food security is the Congress's bid repeat the success of the 2009 rural employment guarantee and loan waiver schemes. 
    Experts, however, say the Food Security Act will have an enormous impact on the cereals market and the farm economy, and presents significant operational challenges. It will also impact the government's finances and widen the subsidy bill. 
    The cost is budgeted at around Rs 124,000 crore a year. Some estimates say to implement it in a sustainable manner can cost Rs 200,000 crore a year, considering the investment required to stabilize production, create infrastructure for storage and railways, and upgrade public distribution system. Another factor is the likely rise in the minimum support price of grains. UPA'S RECIPE FOR 2014 
5kg foodgrain 
every month for 67% of population at 1-3 per kg 
612.3L tonnes 
estimated 
annual foodgrain 
requirement 
1,24,724cr 
expected govt 
expenditure 
for 2013-14 
    Poorest of the poor will still get 35 kg/household under Antyodaya Anna Yojna at above prices 
    Eligible households to be identified by states, but beneficiary list still not ready Maternity benefit of 6,000 a month. Kids between 6 months & 14 yrs to get home ration or hot cooked food 
Eldest woman to be head of household for ration card Food security ordinance Cong poll gimmick: BJP 
Main Opposition May Not Block Bill, Feels Cong 
New Delhi: The government has cleared an ordinance to implement the food security bill. "The objective of providing food and nutritional security to the masses is laudable, but the challenge is getting it right, fixing the leaky public distribution system and providing adequate infrastructure for storage and movement," Ashok Gulati, chairman of the commission for agriculture costs and prices, said. "It will impact the government's finances unless there are commensurate cuts in other subsidies," Gulati cautioned. 
    But Congress managers are confident that the ordinance will be passed by Parliament even though several parties have sought amendments like extending the coverage to 100% as is provided by states like Tamil Nadu. The BJP was quick to attack the ordinance, saying the haste to pass it revealed the Congress's motive of pulling off an "election gimmick" in the last leg of its tenure in office. The government, however, does not think the main opposition, despite its criticism, will block the ratification of the ordinance in Parliament. 
    The UPA's comfort level in Parliament has increased with the Janata Dal (U) parting ways with the BJP-led NDA and the thaw in the Congress's ties with the DMK. This reduces the government's dependence on outfits such as the Samajwadi Party, although no political outfit would want to be seen as opposing the passage of the law. 
    However, the rollout of the food security law still faces hurdles as the beneficiary lists remain disputed, with states arguing over the exclusion criteria. The Centre's below the poverty line list has not been updated as a socio-economic and caste survey remains incomplete. While the Planning Commission has put the number of BPL families at 6.5 crore, the states' lists add up to a shade over 10 crore households. 
    In its latest avatar, the ordinance has done away with distinctions between BPL and above the poverty line families, stipulating that 50% of urban and 75% of rural population be covered by the law. The law will further increase the government's role in the food grain market as it will need a procurement of 61 million tonnes to meet its commitments. However, the UPA will not need to procure the quantity at one go as the country has large food grain reserves. Some like agriculture minister Sharad Pawar have had reservations about the law as they feel it will squeeze out private players from the foodgrain market. According to them, the enhanced procurement will skew the market.

Sonia Gandhi