1.3 LAKH CRORE GAMBLE? LS passes food security bill, Cong, oppn battle for credit

Yeh Karna Hi Hai, Says Cong Chief

New Delhi: The Lok Sabha on Monday passed the food security bill, barely eight months ahead of the 2014 election, amid fierce competition between the Congress and the opposition to daub themselves in populist colours. 
    Termed a "game-changer" by UPA-II, the food security bill went through a protracted passage in the Lok Sabha as opposition parties ranging from the BJP, AIADMK, CPI and BJD to the Akali Dal insisted on a vote on amendments such as further reducing the rack rates for cheap foodgrain and making the law's coverage universal. 
    All concerns about a burgeoning current account deficit and falling growth were kept in abeyance as the Manmohan Singh government and the opposition wrestled to walk away with maximum brownie points after the vote on the bill was concluded. 
    What's the food security scheme? 
It provides for 5kg per person, per month, of rice, wheat or coarse grain. Proposes to cover 67% of India's population or 82 crore people, 75% rural & 50% urban. The rates at which it will be given are 3 for rice, 2 for wheat & 1 for bajra, jowar. Cost of scheme approximately 1.3 lakh crore, up from current food subsidy bill of 75,000 crore in 2012-13. States to get one year for rollout 
    What about existing schemes? 
Some schemes subsumed: Antodaya Anna Yojana (for poorest of poor), midday meals, meals for children aged 6 months-2 years with their mothers, ICDS (for kids below 6). As of now, apart from state schemes, Centre provided cheap food to around 32 crore people under BPL. This jumps to 82 crore. Govt will need to procure 62 million tonnes of grain 
    When will the scheme roll out? 
There are some grey areas and missing links. States have to identify beneficiaries. This can be a problem as exclusion criteria not clear. Centre is to share transport and commission costs, which need to be worked out. Also govt admits to 20-35% leakage in PDS, which needs to be plugged. Ration cards reduced from 22 crore to 16 crore, but more needs to be done. Storage capacity needs to be augmented 
    What's the impact on the economy? 
There will be a push on govt spending which will increase current account deficit – not desirable in present situation. There are also concerns that India's procurement for the scheme could push up world food prices in case of drought and under-procurement 
    Does it make for great politics? 
So far states have cornered political benefits for cheap food grain. Now central govt will seek to gain the upper hand in this populist game. On election eve, this could help Congress Govt wary of oppn amendment in RS 
New Delhi: The Congress and the opposition battled for brownie points while passing the food security bill in the Lok Sabha on Monday. The government said it stopped short of considering universal coverage as it was hemmed in by constraints of production and procurement but justified a long delay in the legislation by arguing that the law has been vastly improved. 
    Congress chief Sonia Gandhi defied the discomfort of a nagging viral fever to set the tone for the ruling party, saying the question whether resources could be mustered for the bill was best answered by stressing, "Ye karna hi hai." She admitted that the bill would provide succour to those who have not benefited from growth and are battling the curse of hunger and malnutrition. 
    Her speech is the first time she has intervened in a debate in the current Lok Sabha apart from a speech during the special session of Parliament held to commemorate its 60 years. She spoke once earlier when proposing Meira Kumar for Speaker. 
    Sonia made it plain that the food bill—seen to have her strong backing—is the Congress's latest rights-based entitlement and a cornerstone of the ruling party's political agenda for the next Lok Sabha election. 
    There was considerable skirmishing over the amendments moved by the opposition with the ruling party benches on one occasion voting against a clause in the bill, mistaking it to be a change proposed by leader of opposition Sushma Swaraj. 
    The matter was settled with Swaraj agreeing to a revote, a rare occurrence in the House. The bill will now be considered by the Rajya Sabha where the government needs to be more careful of its numbers although the BJP has indicated that it is not keen to stall the law. 
    The concern for the government in the Rajya Sabha is that an opposition amendment may end up being part of the bill rather than a clause being struck down. 
    The amendments moved by the opposition in Lok Sabha touched minute aspects of the law like inclusion or exclusion of taxpayers as beneficiaries. The government had to go through a testing time before the bill cleared the Lok Sabha after 10pm. 
    BJP leader Murli Manohar Joshi led the opposition arguments, saying the bill is not a significant improvement over existing benefits and has been brought to Parliament with the objective of "luring voters" ahead of the next election. "This is not a food security bill, this is vote securing bill," he said.