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This is an archive article published on March 8, 2010

Food security to come at variable price

The United Progressive Alliance government will provide wheat and rice to below poverty line people at Rs 3 a kg under the...

The United Progressive Alliance government will provide wheat and rice to below poverty line people at Rs 3 a kg under the proposed Food Security Act only till it remains in power at the Centre. Accordingly,the empowered group of ministers chaired by Finance Minister Pranab Mukherjee has decided that the Act specify only the quantity — 25 kgs — while the price be relegated to the rules that can be changed without requiring an amendment to the Act.

Government managers said the idea was to retain the alliance’s influence over the BPL vote bank by clearly linking the promise of “low-priced food security” to the duration of its stay in power. Implicit,but unstated in the EGoM’s decision is the fact that if the alliance is voted out,the cost of foodgrains will go up,they added.

The number of poor,calculated by any methodology,is not less than 25 billion. “This is the section that turns out in large numbers during the polls for voting,” said a government functionary and a member of the EGoM. The EGoM also decided to limit the definition of food security to the specific issue of foodgrain security (wheat and rice) and de-link it from the larger issue of nutritional security.

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The government had earlier committed that 25 kgs of both rice and wheat will be made available to the poor at Rs 3 per kg per family. “However,there would be no commitment under the Act for Above Poverty Line families. Further,the allocation for BPL families will not be more than 25 kgs,” the EGoM noted in its meeting in February this year.

Presently,the government allocates foodgrains for 65.2 million BPL families based on the 1993-94 poverty estimates of the Planning Commission and March 2000 population estimated of the Registrar General of India (RGI). Within the BPL category,there is a sub-set of Antyodyaya Anna Yojana (AAY) cardholders focused on the poorest of the BPL families. Both BPL and AAY card holders are being issued 35 kg of wheat or rice per family per month. APL families presently get between 10 kgs and 35 kgs per month.

Since there is no unanimity in determining the number of BPL,the EGoM has decided that the numerical ceiling of BPL families will be based on the poverty estimates of the Planning Commission and the census data of the Registrar General of India. It asked the Plan panel to take a final decision on the estimation of poverty at the earliest.

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