Above poverty line families may not get food security cover

Amid concerns of a rising fiscal deficit,the government is unlikely to include Above Poverty Line families under the ambit of the proposed National Food Security Act.

Amid concerns of a rising fiscal deficit,the government is unlikely to include Above Poverty Line (APL) families under the ambit of the proposed National Food Security Act (NFSA). This will mean that the government may not be legally bound to provide 25 kg of rice or wheat to 13.26 crore APL families at the hugely-subsidised rate of Rs 3 per kg.

Government officials estimated that this would significantly reduce the burden on the exchequer,but at the cost of food security to all Indians. Food subsidy for the current fiscal 2009-10 is estimated at Rs 47,000 crore. As on September 30,2009,about 24.23 crore families hold ration cards,of which 13.26 crore fall under the APL category. About 8.54 crore families are under the Below Poverty Line (BPL) category,while the remaining are holders of the Antyodyaya Anna Yojana (AAY) cards. In fact,as on October 30,2009,9.49 lakh tonnes of rice was allocated for BPL families and 5.99 lakh tonnes for APL families.

Presently the allocation of wheat and rice for the APL category ranges between 10 kg and 35 kg a month per family in different states and Union Territories. During 2009-10,about 190.20 lakh tonnes of food grains were allocated to the states/UTs under the APL category against 112 lakh tones in 2008-09.

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In another significant move,the empowered Group of Ministers (EGoM) will also most likely ask states to adhere to the BPL estimate of the Planning Commission. The Plan panel had pegged the quantum of BPL families at 27.5 per cent in 2004-05,a sharp decline from 36 per cent in 1993-94. The Suresh Tendulkar committee had,however,estimated the BPL populace to be about 38 per cent. The two numbers are not comfortable since the Tendulkar committee had redefined the way poverty itself is calculated.

Funding subsidised food for all will entail a cost of over Rs 45,000 crore under the current policies. The Suresh Tendulkar Committees higher poverty estimates would have meant that the costs would go up to Rs 65,000 crore. If APL families are brought under the ambit of the proposed Act,the cost of running the programme with legal backing would touch a whopping Rs 1,00,000 crore, a source said.

Against 4.02 crore households estimated to be below the poverty line,there are about 8.13 crore BPL cardholders. The Group also discussed the issue of ensuring food for orphans and street children,but favoured they be covered by welfare institutions, the source said.

The Group also reasoned that along with the Plan panels estimate,the latest available census data be also used to determine the ceiling for each state and district. The EGoM suggested that the projected population figures of the Registrar General of India be taken for the purpose of five-yearly review of the ceiling, the source said adding that the EGoM also felt the need for a uniform methodology for identification of poor under various government programmes.

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In another move,the EGoM is understood to have agreed to continue with the existing status of the Antyodyaya Anna Yojana,in which 35 kgs of rice or wheat is provided to the poorest among the poor at a rate of Rs 2 per kg.

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