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Useoftechnologyinsportingevents

FoodSecurityBill:IsitaBlessinginDisguise?

FoodSecurityBill:Thebillismeanttoprovidesubsidizedfoodgrainstopeople.Thebillseekstocover75%oftheruralpopulationand50%ofurbanpopulationinthecountry.InitialestimatessuggestthatthefoodsubsidybillcouldbeupwardsofRs.1lakhcrore.

Mainprovisions:Aminimumof46%oftheruralpopulationand28%urbanpopulationwillget7kgoffoodgrainspermonthperperson.TheresultsofSocio-EconomicandCasteCensuswillbeabletoputupabetterapproximationtothecoverage.ForPriorityGroup(thosebelowpovertyline):7kggrainpermonthperperson.RiceatRs.3perkg,wheatatRs.2perkgandcoarsegrainatRe.1akg.ForGeneralGroup:3kgperpersonpermonthathalfofminimumsupportpricegiventofarmers.ThePlanningCommissionwilllaydownthecut-offforbeneficiariesineachstatetogetsubsidyfromtheCentreundertheActtoprovidethefoodgrainsatlowrates.Thegovernmentalsoplanstointroducethefortifiedpackagedfoodtochildrenunderthelawbystipulatingstrictguidelinesforlevelsofmicronutrientstobecontainedinmealstobeprovidedtochildren.

TheCentralgovernmentwillprovidefoodgrainsfreeofcosttoallthestates,whiletherestofthecostsinvolvedneedtobejointlybornebybothcentralandstategovernmentwiththebulk(upto70%)tobebornebycentre.

IssueswiththeBill:Availabilityoffoodgrains:Indiawillannuallyneed60millionto61milliontonsofgrainstofeedpeoplewhowillbeeligibleforassistanceundertheprogram;upfromaround55milliontonsitneedsnowforstate-runwelfareprograms.Storageofthefoodgrains:Wastageinthepublicdistributionsystem(PDS).Financialimplicationsofprovidinglegalentitlementtothepoortosubsidizedgrains:Thedirectcashtransfersystemisnotanalternativetotacklecorruptionasitwouldleadtoacollapseofexistingmechanismsuchasminimumsupportpricetofarmers.Thegovernmentwillalsoneedaninvestmentof1to4lakhcror

erupeestoboostfarmoutputovernextfewyears.Fearofmisuse:TheestimatedtotalamountneededtoimplementthelawwouldbearoundRs3.5lakhcrore,asfundswouldbeneededtoraiseagricultureproduction,createstoragespaceandpublicityandsoon.Theinvolvementoffinancetothiseffectwithoutaregulatoryprocedureinplacecouldunderminethebenefits.Absenceofspecialprovisions:ThereisadearthofsecurityincaseofaForce-Majeursituation,whichiswhentherequirementthesoughtmajorly.

FocusonspecificmattersthroughtheBill:Malnutrition:ThroughprogramssuchasMid-DayMealScheme,provisionslikenutritionalguaranteeforpregnantwomenandcommunitykitchensfordestitutepeople,migrantsandothers,malnutritioncouldbedecreased.TheBillprovidesforamaternitybenefitofRs.1,000amonthforsixmonths.

Mismatch:TheremightbeadecreaseintheGDPby0.2%butthiswillensurethatthedemand-supplymismatchoroveraccumulationcouldbesortedout.Betterdevelopmentofthecommonman:Therewouldbeadecreaseinthedisparitybetweenthevarioussectionsofthesociety.ThiswouldyieldanincreaseinHDI.Sectorcontribution:Withanincreaseintheproductivityandprices,theagriculturalsectorwouldbeabletocontributebettertotheGDP.Thiswouldalsoleadtoanincreaseinthedevelopmentofthenation.

MethodstomaketheBillviable:

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Focusontheindividual:Insteadofprovidingforthefamilyasawholeat35kgs,7kgsareprovidedtoeachindividual.Withtheaveragefamilysizeat5.3,thegrainswouldbedistributedinproportiontothenumberofmembersinthefamilyandnotassumethateveryfamilyhas5membersbyproviding35kgs.Agriculturalproductivity:TheaverageholdingsizeinChinaishalf(0.5ha)ofIndia's,andyettheirproductivitylevelsarealmostdoublethanIndia's.Forinstance,Chinaproducesalmost200milliontonnesofpaddyfrom29millionhectares,whileIndiaproduceslessthan150milliontonnesofpaddyfrom44millionhectares.Thusafocusonincreaseofproductivityshouldbeemphasizedon.Bettersourcing:Itisknownthatabout35-40%offruitsandvegetables,and10%offoodgrainsarewasted.EfficientSupplyChainManagementcanbeputintoplacethusallowingfordecreaseinfoodwastage.Boostsupplyofsuperiorfoodsandmodernisefoodretailingwithtargetedinvestmentincoldchains,logisticsandbusiness-likegrowers'co-operativesshouldbesought.Budget:TheupcomingbudgetshouldfocusonearmarkingfundswhichleadtoanimprovementintheknowledgeoftheBilltotheproposedaudiencealongwithincreaseinR&Dinagriculturesector.

Conclusion:TheBillaimstosolvevariousproblemsatonegobutitalsoexposesthesocietytovariousoperationalandfinancialrisks.Theseriskshavetobefine-tunedinordertoprovideforabalancedgrowththroughtheconfinesoftheBill.