Course Title : Economic Environment Of Business (EEB)

Course Code : DF - 206

Food Security in India

Submitted to
Prof. Dr. K. C. Padhy

By:
Name: - Pallab Kumar Sen
Roll No.: - 09DF036
 Introduction
India is second largest country in the world in the manner of
population. It is most important considerable plus point of the India, because
it involve large human capital. Even we all Indian are thinking that, we will
become super power in the world. But when we look at the basic problems of
the Indian peoples, we know that- the Indian common man is facing lots of
problems today. Recently most of Indian peoples are struggling with the
bread and butter due to the continuously increasing prices of foodgrains,
vegetables, pulses and other cereals. Food security implies access by all
people at all times to sufficient quantities of food to lead an active and
healthy life.” As noted by P.V. Srinivasan, this requires not just adequate
supply of food at the aggregate level but also enough purchasing capacity
with the individual/ household to demand adequate levels of food. As far as
the question of ‘adequate supply’ is concerned, it involves two dimensions: 1.
the quantitative dimension ( in the sense that the overall food availability in
the economy should be sufficient to meet the demand), and 2. the
qualitative dimension ( in the sense that the nutritional requirements of the
population are properly looked after). As far as the question of ‘enough
purchasing capacity’ is concerned, it involves the introduction of employment
generation programmes so that the income and purchasing power of the
people increases. To tackle the quantitative and qualitative aspects of the
food security problem, the Government of India relied on the following three
food-based safety nets: (1) Public Distribution System (PDS) (2) Integrated
child Development Services (ICDS) and (3) Mid-day meals programme(MDM).
As far as the issue of providing purchasing power to the people is concerned,
various employment programmes have been introduced from time to time.
Even amongst these, PDS has been the focus of most of the attention and
debate over the years.

What is food security?

Food security means availability, accessibility and affordability of food

to all people at all times. The poor households are more vulnerable to food
insecurity whenever there is a problem of production or distribution of food
crops. Food security depends on the Public Distribution System (PDS),
Government vigilance and action at times when this security is threatened.
Food is as essential for living as air is for breathing. But food security
means something more than getting two square meals. Food security has
following dimensions (a) availability of food means food production within the
country, food imports and the previous years stock stored in government
granaries. (b) accessibility means food is within reach of every person. (c)
affordability implies that an individual has enough money to buy sufficient,
safe and nutritious food to meet one's dietary needs. Thus, food security is
ensured in a country only if (1) enough food is available for all the persons (2)
all persons have the capacity to buy food of acceptable quality and (3) there
is no barrier on access to food.

Why food security?

The poorest section of the society might be food insecure most of the
times while persons above the poverty line might also be food insecure when
the country faces a national disaster/calamity like earthquake, drought, flood,
tsunami, widespread failure of crops causing famine, etc.

How is food security affected during a calamity?

Due to a natural calamity, say drought, total production of foodgrains
decreases. It creates a shortage of food in the affected areas. Due to
shortage of food, the prices go up. At the high prices, some people cannot
afford to buy food. If such calamity happens in a very wide spread area or is
stretched over a longer time period, it may cause a situation of starvation. A
massive starvation might take a turn of famine.

A Famine is characterised by wide spread deaths due to starvation and

epidemics caused by forced use of contaminated water or decaying food and
loss of body resistance due to weakening from starvation. The most
devastating famine that occurred in India was the FAMINE OF BENGAL in
1943. This famine killed thirty lakh people in the province of Bengal.

Who are food-insecure?

Although a large section of people suffer from food and nutrition
insecurity in India, the worst affected groups are landless people with little or
no land to depend upon, traditional artisans, providers of traditional services,
petty self-employed workers and destitutes including beggars. In the urban
areas, the food insecure families are those whose working members are
generally employed in ill-paid occupations and casual labour market. These
workers are largely engaged in seasonal activities and are paid very low
wages that just ensure bare survival.

The social composition along with the inability to buy food also plays a
role in food insecurity. The SCs, STs and some sections of the OBCs (lower
castes among them) who have either poor land-base or very low land
productivity are prone to food insecurity. The people affected by natural
disasters, who have to migrate to other areas in search of work, are also
among the most food insecure people. A high incidence of malnutrition
prevails among women. This is a matter of serious concern as it puts even
the unborn baby at the risk of malnutrition. A large proportion of pregnant
and nursing mothers and children under the age of 5 years constitute an
important segment of the food insecure population.

The food insecure people are disproportionately large in some regions

of the country, such as economically backward states with high incidence of
poverty, tribal and remote areas, regions more prone to natural disasters etc.
In fact, the states of Uttar Pradesh (eastern and south-eastern parts), Bihar,
Jharkhand, Orissa, West Bengal, Chattisgarh, parts of Madhya Pradesh and
Maharasthra account for largest number of food insecure people in the
country. Hunger is another aspect indicating food insecurity. Hunger is not
just an expression of poverty, it brings about poverty. The attainment of food
security therefore involves eliminating current hunger and reducing the risks
of future hunger. Hunger has chronic and seasonal dimensions. Chronic
hunger is a consequence of diets persistently inadequate in terms of quantity
and/or 46 Economics quality. Poor people suffer from chronic hunger because
of their very low income and in turn inability to buy food even for survival.
Seasonal hunger is related to cycles of food growing and harvesting. This is
prevalent in rural areas because of the seasonal nature of agricultural
activities and in urban areas because of the casual labour, e.g., there is less
work for casual construction labour during the rainy season. This type of
hunger exists when a person is unable to get work for the entire year.

What Is Expected In Food Security?

Food security happens when all people at all times have access to
enough food that should affordable, safe and healthy, culturally acceptable ,
meets specific dietary needs, obtained in a dignified manner and produced in
ways that are environmentally sound. The World Food Summit of 1996
defined food security as existing "when all people at all times have access to
sufficient, safe, nutritious food to maintain a healthy and active life".
Commonly, the concept of food security is defined as including both physical
and economic access to food that meets people's dietary needs as well as
their food preferences. But food security is a complex sustainable
development issue, linked to health through malnutrition, but also to
sustainable economic development, environment, and trade. There is a great
deal of debate around food security. If we fail to maintain above there has
been food insecurity. Food insecurity exists when all people, at all times, do
not have physical and economic access to the sufficient, safe and nutritious
food to meet their dietary needs and food preferences for an active and
healthy life.

India is aiming at Self-sufficiency in Foodgrains since Independence.

After independence, Indian policy makers adopted all measures to

achieve self-sufficiency in food grains. India adopted a new strategy in
agriculture, which resulted in the ‘Green Revolution’ especially in the
production of wheat and rice. Indira Gandhi, the then Prime Minister of India,
officially recorded the impressive strides of the Green revolution in
agriculture by releasing a special stamp entitled ‘Wheat Revolution’ in July
1968. The success of wheat was later replicated in rice. The increase in
foodgrains was, however, disproportionate. The highest rate of growth was
achieved in Punjab and Haryana, where foodgrains production jumped from
7.23 million tonnes in 1964–65 to reach an all-time high of 30.33 million
tonnes in 1995–96. Production in Maharashtra, Madhya Pradesh, Bihar, Orissa
and the northeastern states continued to stagger. Tamil Nadu and Andhra
Pradesh, on the other hand, recorded significant increases in rice yield.

Food Security in India

National Food Security Act:

Available from 4 June, 2009 onwards by the Ministry of Consumer

Affairs, Food and Public Distribution. Its objective is to Ensuring food security
to the Below Poverty Line (BPL) people in urban & rural areas. Under the new
Act, the government would provide 251 lakh tons of food grains for BPL
categories, with subsidy amounting to Rs.40,380 crore.
The scheme proposes to provide BPL families with 25kgs of grain per
month at Rs. 3 per kg. The stocks of foodgrains (wheat and rice) in the
central pool, as on June 1, 2009 were 204.03 lakh tons of rice and 331.22
lakh tons of wheat."The estimated annual requirement of foodgrains is about
446 lakh tons under TPDS and about 50 lakh tons under other welfare
schemes," Pawar added.
Looking at the popularity of the National Rural Employment Guarantee
Scheme (NREGS), which helped the Congress to win the 2009 Parliamentary
elections, the newly constituted Government has thought of bringing the
Food Security Act * President Pratibha Patil on June 4, 2009 said that a
National Food Security Act would be formulated whereby each below poverty
line (BPL) family would be entitled by law to get 25 kg of rice or wheat per
month at Rs 3/- per kg, a promise made by the Congress before general
elections 2009. Many would agree that the proposal for a Food Security Bill
has come at the right point of time when the world has already witnessed
food crisis in 2008 that pushed millions of people to the brink of poverty and
under nutrition.

Key Features for the new act

 Below Poverty Line (BPL) households: All BPL households shall be entitled
to 35 kg of foodgrain each month, at Rs 3/kg for rice and Rs 2/kg for
wheat under the Public Distribution System. Each nuclear family shall be
treated as a separate household. A new methodology for the BPL Census
is being proposed, based on simple, transparent and verifiable criteria.
For instance, in rural areas any household that meets any two simple
inclusion criteria (such as landlessness and being SC/ST) shall be entitled
to a BPL Card. Households meeting any of six “exclusion criteria” will not
be entitled to BPL cards. Extensive transparency safeguards will also be
introduced in the Public Distribution System (PDS)
 The proposed Act demands for continuation of existing food related
schemes such as: Integrated Child Development Services, Mid-Day Meal
Scheme, Public Distribution System, Antyodaya, National Maternity
Benefit Scheme/ Janani Suraksha Yojana, National Social Assistance
Programme, including Indira Gandhi National Old Age Pension Scheme,
Indira Gandhi National Widow Pension Scheme and Indira Gandhi National
Disability Pension Scheme, National Family Benefit Scheme, and Rajiv
Gandhi National Crèche Scheme. All the provisions in various such
schemes have been elaborately discussed in the proposed Act

 The proposed Act has asked for severe penalties against individuals and
organizations/ companies who are held responsible for violation of food
safety norms and standards that affects the public. It has demanded for
severe punishment to those who push for baby food instead of breast
milk
 The draft Right to Food Act has safeguards against encroachments by
corporate lobbies and private contractors in food and nutrition related
schemes

Apprehensions about the new National Food SecurityAct:

* If made into a law, the draft Food Security Bill would reduce the allocation
for a below poverty line (BPL) household (e.g. in the case of Antodaya Anna
Yojana) from 35 kg of rice/ wheat per month to 25 kg of rice/ wheat per
month. This would appear contradictory to many who expected the Bill to be
a benign effort of the UPA-II (2009-****) to ensure food security.

* Instead of better implementation of the already existing schemes such as

the Targeted Public Distribution System (TPDS), Antodaya Anna Yojana (AAY),
Integrated Child Development Scheme (ICDS), Mid Day Meal Scheme (MDMS)
etc., the Food Security law might make things unduly worse and
unnecessarily complicated. A cynical question here would be: Is the Food
Security Bill going to replace all such food related schemes that existed
before its enactment?

* If the Bill is about ensuring food security, how can it leave those who may
not fall below the poverty line but are already exposed to food insecurity?
The Rome Declaration (1996) made during the World Food Summit states
that ‘food security is achieved when all people, at all times, have physical
and economic access to sufficient, safe and nutritious food to meet their
dietary needs and food preferences for an active life’. Food security is about
nutrition security too. If that is the case, the Food Security Bill has to rethink
about the quality of food grains supplied and distributed. The Food Security
Bill must also aim at providing fortified food grains along with pulses, edible
oils, salt and essential spices. A balanced diet would ensure both food and
nutrition security. The basket of commodities, which would be available to
the consumers, should reflect local tastes and preferences and must include
locally grown cereals and legumes.

* If targeting of BPL households is done under the Food Security Bill, then that
would lead to inclusion (including the non-poor) and exclusion (excluding the
poor) errors. It would be wiser to go for universalization (rather than
targeting) as was recommended by the Committee on Long Term Grain Policy
under the chairmanship of Prof. Abhijit Sen (2000-02).

* Is India ready to rely exclusively upon biotechnology and genetic

engineering for increasing its agricultural production so as to ensure food
security for all? Much of debates have already taken place on the usefulness
and pitfalls of GMOs.

* The World Development Report 2008-Agriculture for Development, which

has been brought out by the World Bank mentions that India presently faces
the problem of depleting ground water level that makes agriculture
unsustainable and poses risk to environment. If rice is one of the food grains
that is going to be supplied when the Food Security Act comes into being,
then more and more farmers would go for cultivation of rice by looking at the
price incentives offered by the Government. In the Punjab region,
overexploitation of groundwater takes place thanks to the huge subsidies
given on electricity. Moreover, minimum support prices (MSP) for rice
increase the financial attractiveness of rice relative to less water-intensive
crops, which makes depletion of ground water table more obvious.

* There are apprehensions that sustainability of Food Security law would be

at peril if India faces lower agricultural production due to poor harvest,
drought etc. in the future. Is India ready to rely upon food imports and food
aid to ensure right to food at all cost? At present, the country has been facing
shortage in south-west monsoon rainfall that might affect agricultural
production and prices of commodities.

Since the advent of the Green revolution in the early-’70s, the country
has avoided famine even during adverse weather conditions. India has
become self-sufficient in foodgrains during the last thirty years because of a
variety of crops grown all over the country. The availability of foodgrains
(even in adverse weather conditions or otherwise) at the country level has
further been ensured with a carefully designed food security system by the
government. This system has two components: (a) buffer stock and (b) public
distribution system.

The nature of the problem

The Quantitative Aspect:

Because of chronic food shortages that the country faced in the years
following Independence, the focus of food policy was to achieve self
sufficiency. The period after the Third Plan has been marked by rapid strides
in foodgrains production. This has enabled the economy to overcome the
problems of foodgrains shortages and build up large stocks of foodgrains to
counter any scarcity conditions. In fact, as noted by R. Radhakrishna, India
achieved self-sufficiency in foodgrains in the 1970s and has sustained it since
then. It improved its capacity to cope with year-to-year fluctuations in food
production by building up large buffer stocks through the agency of FCI
( Food Corporation of India) and supplying these stocks to the people through
the PDS. During some of the recent years, the buffer stocks considerably
exceeded the minimum norms causing the problem of ‘excess stocks’. In July
2002, the actual stocks of foodgrains were as high as 63.0 million tons ( the
highest level attained) while the buffer stock norm was 24.3 million tons. As a
result, ‘excess stocks’ were as much as 38.7 million tons. However, stocks
have subsequently declined. In fact, stocks of foodgrains stood at 17.4 million
tons on January 1, 2007, lower than not only the stock of 18.8 million tons on
January 1, 2006 but also the buffer stock norm of 20 million tones. The main
reason for the decline in stocks was the lower stock of wheat. However, the
stock of foodgrains rose to 19.2 million tons on January 1, 2008 which is the
close to the buffer stock norm of 20 million tones and is considered by
Economic Survey, 2007-08, as ‘adequate for meeting the requirement under
TPDS and welfare schemes during the current financial year.
 However, there are some issues of concern. Analysts point out that
while population growth and shift in food habits away from coarse grains with
the rise in incomes, will push up the consumption of wheat considerably in
years to come ( to about 82 millions tons in 2009-10 and 90 million tons in
2014-15), the production is not likely to rise as neither area under wheat is
likely to increase nor are any further increases in productivity in evidence ( in
fact, wheat productivity after touching the level of 2,762 kgs per hectare in
2001-02 had tended to decline and was only 2,671 kgs per hectare in 2006-
07). As far as rice is concerned, its production in recent years has been more
than consumption except 2002-03. however, rice output has not grown
strongly with yields stagnating at around 2,000 kgs per hectare since the late
1990s. even area under rice has tended to fall ( it was 45.2 million hectares
in 1999-2000 and 43.6 million hectares in 2006-07). Accordingly, many
observers believe that rice production is also beginning to plateau. As far as
vegetable oils and pulses are concerned. India already imports their large
quantities. For instance, vegetable oil imports were 49.85 per cent (i.e. half)
of total consumption in 2004-05 while pulses imports were 8.83 per cent of
total consumption in that year.

The qualitative aspect: Evben more worrisome is the qualtitative

aspect of the problem as the following facts clearly bring out.
1. According to the Global Hunger Index, 2007, India ranks an abysmal 96
in a group of 119 developing countries. Only Bangladesh has worse
levels of hunger than India in South Asia. Even Nepal is for notches
higher than India at number 92 and Pakistan 8 points higher at number
88.
2. according to the World Food programme, nearly 50 per cent of the
world hungry lives in India.
3. about 35 per cent of India’s population – over 350 million is food –
insecure, consuming less than 80 per cent of the minimum energy
requirement.
4. nearly 9 out of 10 pregnant women between 15 and 49 years are
malnourished and anemic.
5. anemia in pregnant women causes 20 per cent of the infant mortality.
6. 46 per cent of children under 5 were malnourished in 2006. the rate
has improved by just one per cent in a decade but still worse least
developed countries were the figure is 35 per cent.
7. of the 9.7 million total deaths of children under five worldwide, 2.1
million deaths were in India in 2006. In other words India contributed
21.6 per cent of total deaths in the world below five – years group.
8. malnutrition accounts for 50 per cent of under five deaths.
9. of the 19 million infants with low birth weight in the developing world,
8.3 million come from India, were under weight prevalence rate is 43
per cent.
10.about one-third of under weight children under five live in India ( 54.6
million out of 156 million): Madhya Pradesh, Bihar, jharkhand, Gujrat,
Orissa, Chattisgarh, meghalaya and Uttar Pradesh are worst offenders.
11.percentage of children suffering from anemia is 77. in other words,
three out of four children in India are anaemic.
 12.percentage of stunted children is 37. i.e., one out of three children has
stunted growth.
13.percentage of children not fully immunized is 51.

Problems in PDS & Food Security for the poor

• Virtual exclusion of states like Bihar & Uttarpradesh from PDS network.
• In states like Kerala & Andhra Pradesh PDS expenditure was higher but
the poor purchased less while the non-poor purchased more. The PDS
scheme was regressive in this case.
• In other states the coverage was low. The monthly per capita purchase
was 0.9kg in rural areas & 1.3kg in urban areas.
• The monthly purchase from PDS was uniformly lower across all states.
It was no guarantee that the very poor are better served.
• Thus PDS remained an expensive and largely untargeted programme.

GOVERNMENT EXPENDITURE ON FOOD

Year Expenditure at % of total Govt.

current prices (Rs. expenditure
crores)
1980-81 650 2.9

1990-91 2,450 2.3

2000-01 12,120 3.6

2004-05 27,798 2.5

2005-06 23,077 1.3

2006-07 24,014 1.0

Supply Side Analysis of Food Insecurity in India

According to the data published by the government of India and the

Food Corporation of India, total production of foodgrains was 230.78 million
tonnes in 2007-08 and in recent year it is 229.85 million tonnes. There is just
0.93 million tonnes of foodgrains production decreased than last year. Hence
question is that, only 0.93 million tonnes falling production of foodgrains can
create such situations of food insecurity in India? When look at the statistics
relating to the major foodgrains production. We found that, rice production is
increased from 96.69 to 99.37 million tonnes in 2007-08 to 2008-09, wheat
production is decreased from 78.57 to 77.63 million tonnes, production of
coarse cereals is just decreased from 40.76 to 38.67 million tonnes, cereals
production is decreased from 216.02 to 215.67 million tonnes and production
of pulses is near about stable it is changed from 14.76 to 14.18 million tonnes
in same year.

In the same year population growth is near about hardly 1.10 percent and net
growth of population may be 0.50 to 0.75 percent. It is not larger growth
which may become burden on food supply in India. Because, in the same
period fish production is increased from 6.8 to 7.3 million tonnes, fruit
production increased from 59563 thousand tonnes and production of
vegetables is increased from 115011to 125887 thousand million tonnes.
Apart from the production of foodgrains and supported foods buffer stock of
foodgrains also increase continually since 2007. In year 2006-07 buffer stock
of wheat were 54.28 million tonnes and 119.77 million tonnes of rice stock. In
year 2007-08 stock of wheat were 77.12 million tonnes and 114.75 million
tonnes of rice and in year 2009 stock of wheat is increased to 182.12 million
tonnes and stock of rice is increased to 175.76 million tonnes. There has
been net growth in the major foodgrains production in India. So we conclude
that, it is not economic problem it may be another type.

What is Buffer stock?

Buffer Stock is the stock of foodgrains, namely wheat and rice

procured by the government through Food Corporation of India (FCI). The
FCI purchases wheat and rice from the farmers in states where there is
surplus production. The farmers are paid a pre-announced price for their
crops. This price is called Minimum Support Price. The MSP is declared by
the government every year before the sowing season to provide incentives to
the farmers for raising the production of these crops. The purchased
foodgrains are stored in granaries. Do you know why this buffer stock is
created by the government? This is done to distribute foodgrains in the deficit
areas and among the poorer strata of society at a price lower than the
market price also known as Issue Price. This also helps resolve the problem
of shortage of food during adverse weather conditions or during the periods
of calamity.

What is the Public Distribution System?

Public Distribution System

The basic objective of the public distribution system in India is to

provide essential consumer goods at cheap and subsidized prices to the
consumer so as to insulate them from the impact of rising prices of these
commodities and maintain the minimum nutritional status of our population.
 It acts as a price support programme for the consumer during the
periods of shortage of the 1960s. Thus, it acted as an instrument of price
stabilization and became countervailing force against private traders who
were interested to exploit the situation of scarcity to acquire more and more
profits. The basic aim was to provide essential commodities such as rice,
wheat, sugar, edible oil, soft coke and kerosene at subsidized prices.
It acquired the status of a welfare programme. An effort was made to
extend subsidized foodgrains in 1985 in all the tribal blocks covering about
57 million persons. With a network of more than 4.62 lakh fair prices shops
distributing commodities worth Rs. 30,000 crores annually to about 160
million families, the PDS in India was the largest distribution network of its
kind in the world.
The food subsidy component of the Central Government is given in
table 2. it may be noted that there has been a continuous increased in PDS
expenditure, which rose from Rs. 650 crores in 1980-81 to Rs. 2,450 crorres
in 1990-91. There was a big jump in expenditure during the period. As a
proportion of Central Government expenditure , it was in the range of 2.9 to
3.2 per cent during 1980s and 1990s. Since 1997-98 PDS expenditure has
been sooting up from Rs. 7,500 crores to Rs. 12,120 crorres in 2003-04. Food
subsidies as percentage of total government expenditure went up sharply
form 2.9 per cent in 1980-81 to 5.2 per cent in 2003-04.

Relative Share of Different Items in PDS Sales

Rice, wheat, sugar, edible oil, soft coke and kerosene are sold through
PDS outlets. Of these four items, viz, rice, wheat, sugar and kerosene
account for 86 per cent of total PDS sales. Sugar alone accounts for 35 per
cent, followed by rice (27%), wheat (10%) and kerosene (15%). Coarse
cereals (bajra, jowar and other coarse grains), which are largely consumed by
the poor accounts for less than one per cent of total PDS sales. The share of
pulses, tha main source of protein for the poor, is less than 0.2 percent.

PDS impact on Poverty

Radhakrishna report has also studied the decline in poverty as a result
of PDS subsidies. Taking India as a whole, the impact of all consumer
subsidies on poverty was moderate; subsidies were estimated to have
reduced poverty by 1.6 percentage points in rural areas and 1.7 percentage
points in urban areas. About 12 million persons may have moved out of
poverty in 1986-87 due to income transfers from PDS. As the absolute
number of poor in India was put at 274 million in 1986-87, these numbers are
small, rather insignificant.
The poor impact of the scheme in poor states also underlines the need
for strengthening PDS in these states. As long as the development process is
not able to reduce poverty continuance of the PDS in poor states stands
justified. Rather, the need of the hour is to encourage proper targeting to
achieve better results to pursue PDS.

State Intervention in Foodgrains and FCI

The main agency providing foodgrains to the PDS is the Food

Corporation of India (FCI) set up in 1965. The primary duty of the corporation
is to undertake the purchase, storage, movement, transport, distribution and
sale of foodgrains and other food stuffs. It ensures on the one hand that the
farmers get remunerative prices for their produce ( not less than the support/
procurement prices fixed by the government), and on the other hand, the
consumers get foodgrain from the central pool at uniform prices ( known as
issue prices), fixed by government of India. The corporation has also been
entrusted with the responsibility of maintaining buffer stocks of foodgrains on
behalf of the government. With the increasing production of wheat and rice in
recent years and the increasing demand on the PDS, the role of FCI has also
increased as is the sole repository of foodgrains meant for the PDS. FCI has
the following achievements to its credit: 1. ever since FCI started its
procurement operations, the levels of procurement has increased
considerably enabling the government to build up adequate buffer stocks on
the one hand, and to meet the requirements of the PDS on the other hand: 2.
With increase in domestic procurements of foodgrains by the FCI,
dependence on imports of foodgrains has declined considerably, enabling the
country to save valuable foreign exchange: 3. Since a major part of FCI’s
procurements operations is in the nature of price support purchase, the FCI
has arrested price declines to unremunerative levels: 4. By supplying
foodgrains through the PDS at affordable prices, the FCI has helped in
reducing the inflationary pressures on the one hand, and has enabled the low
income group to meet their foodgrains requirements on the other hand: and
5. The FCI has played an important role in building up scientific storage
capacity in the country. This has not only enabled the country to build up
buffer stocks it has also helped in reducing losses on storage.

The food procured by the FCI is distributed through government

regulated ration shops among the poorer section of the society. This is called
the public distribution system (PDS). Ration shops are now present in most
localities, villages, towns and cities. There are about 4.6 lakh ration shops all
over the country. Ration shops also known as Fair Price Shops keep stock
of foodgrains, sugar, kerosene oil for cooking. These items are sold to people
at a price lower than the market price. Any family with a ration card can buy
a stipulated amount of these items (e.g. 35 kg of grains, 5 litres of kerosene,
5 kgs of sugar etc.) every month from the nearby ration shop.There are three
kinds of ration cards: (a) Antyodaya cards for the poorest of the poor; (b) BPL
cards for those below poverty line; and (c) APL cards for all others.

The introduction of Rationing in India dates back to the 1940s against

the backdrop of the Bengal famine. The rationing system was revived in the
wake of an acute food shortage during the 1960s, prior to the Green
Revolution. In the wake of the high incidence of poverty levels, as reported
by the NSSO in the mid-1970s, three important food intervention
programmes were introduced: Public Distribution System (PDS) for food
grains (in existence earlier but strengthened thereafter); Integrated Child
Development Services (ICDS) (introduced in 1975 on an experimental basis)
and Food-for-Work** (FFW) (introduced in 1977–78). Over the years, several
new programmes have been launched and some have been restructured with
the growing experience of administering the programmes. At present, there
are several Poverty Alleviation Programmes (PAPs), mostly in rural areas,
which have an explicit food component also. While some of the programmes
such as PDS, mid-day meals etc. are exclusively food security programmes,
most of the PAPs also enhance food security. Employment programmes
greatly contribute to food security by increasing the income of the poor.

Current Status of Public Distribution System

Public Distribution System (PDS) is the most important step taken by

the Government of India (GoI) towards ensuring food security. In the
beginning the coverage of PDS was universal with no discrimination between
the poor and non-poor. Over the years, the policy related to PDS has been
revised to make it more efficient and targeted. In 1992, Revamped Public
Distribution System (RPDS) was introduced in 1,700 blocks in the country.
The target was to provide the benefits of PDS to remote and backward areas.
From June 1997, in a renewed attempt, Targeted Public Distribution System
(TPDS) was introduced to adopt the principle of targeting the ‘poor in all
areas’. It was for the first time that a differential price policy was adopted for
poor and non-poor. Further, in 2000, two special schemes were launched viz.,
Antyodaya Anna Yojana (AAY) and the Annapurna Scheme (APS) with special
target groups of ‘poorest of the poor’ and ‘indigent senior citizens’,
respectively. The functioning of these two schemes was linked with the
existing network of the PDS.

The PDS has proved to be the most effective instrument of government

policy over the years in stabilising prices and making food available to
consumers at affordable prices. It has been instrumental in averting
widespread hunger and famine by supplying food from surplus regions of the
country to the deficit ones. In addition, the prices have been under revision in
favour of poor households in general. The system, including the minimum
support price and procurement has contributed to an increase in food grain
production and provided income security to farmers in certain regions.

Programmes for Food Security in India: India has the largest food
schemes in the World.

Entitlement Feeding Programmes

With a view to enhancing enrollment, retention and attendance and

simultaneously improving nutritional levels among children, the National
Programme of Nutritional Support to Primary Education (NP-NSPE) was
launched as a Centrally Sponsored Scheme on 15th August 1995, initially in
2408 blocks in the country. By the year 1997-98 the NP-NSPE was introduced
in all blocks of the country. It was further extended in 2002 to cover not only
children in classes I-V of government, government aided and local body
schools, but also children studying in EGS and AIE centres. Central Assistance
under the scheme consisted of free supply of food grains @ 100 grams per
child per school day, and subsidy for transportation of food grains up to a
maximum of Rs 50 per quintal.

In September 2004 the scheme was revised to provide cooked mid day
meal with 300 calories and 8-12 grams of protein to all children studying in
classes I-V in Government and aided schools and EGS/AIE centers. In addition
to free supply of food grains, the revised scheme provided Central Assistance
for (a) Cooking cost @ Re 1 per child per school day, (b) Transport subsidy
was raised from the earlier maximum of Rs 50 per quintal to Rs. 100 per
quintal for special category states, and Rs 75 per quintal for other states, (c)
Management, monitoring and evaluation costs @ 2% of the cost of food
grains, transport subsidy and cooking assistance, (d) Provision of mid day
meal during summer vacation in drought affected areas. 12 crore (120
million) children are so far covered under the Mid-day Meal Scheme, which is
the largest school lunch programme in the world. Allocation for this
programme has been enhanced from Rs 3010 crore to Rs 4813 crore (Rs 48
billion1.2 billion) in 2006-2007.

National Food for Work Programme:

National Food for Work Programme was launched on November 14,

2004 in 150 most backward districts of the country with the objective of
intensifying the generation of supplementary wage employment. The
programme is open to all rural poor who are in need of wage employment
and desire to do manual unskilled work. It is implemented as a 100 per cent
centrally sponsored scheme and the foodgrains are provided to States free of
cost. The Collector is the nodal officer at the district level and has the overall
responsibility of planning, implementation, coordination, monitoring and
supervision. For 2004–05, Rs 2,020 crore have been allocated for the
programme in addition to 20 lakh tonnes of foodgrains.

Food Subsidy Programmes

Antyodaya Anna Yojana (AAY): AAY was launched in December 2000.

Under the scheme one crore of the poorest among the BPL families covered
under the targeted public distribution system were identified. Poor families
were identified by the respective state rural development departments
through a Below Poverty Line (BPL) survey. Twenty five kilograms of
foodgrains were made available to each eligible family at a highly
subsidised+ rate of Rs 2 per kg for wheat and Rs 3 per kg for rice. This
quantity has been enhanced from 25 to 35 kgs with effect from April 2002.
The scheme has been further expanded twice by additional 50 lakh BPL
families in June 2003 and in August 2004. With this increase, 2 crore families
have been covered under the AAY.
Annapurna (10 kgs of free food grain for destitute poor): The
Annapurna scheme aims at providing food security to meet the requirement
of those Senior Citizens who through eligible have remained uncovered under
the National Old Age Pension Scheme (NOAPS). Under the Annapurna
Scheme, 10 Kg. of food grains per month are to be provided 'free of cost' to
the Beneficiary. The number of persons to be benefited from the Scheme will,
in the first instance, be 20% of the persons eligible to receive pension under
NOAPS in States/Union Territories.

Integrated Child Development Services (ICDS)

ICDS launched in 1975 is a centrally sponsored scheme implemented
by the ministry of Human Resource Development. The central government is
responsible for programme planning and operating costs while state
governments are responsible for programme implementation and providing
supplementary nutrition out of their own resources. It is one of the child
intervention programme in the world with a holistic package of six basic
services for children up to six years of age, and for pregnant and nursing
mothers. These services are:
1. Supplementary feeding (ICDS provides to a child food
ration for 300 days, containing 300 calories and 12.5
grams protein and to pregnant and lactating women food
ration containing 500 calories and 12-15 grams protein)
2. Immunisation
3. Health Check-ups
4. Referral services
5. Health and nutrition, education to adult women, and
6. Non-formal pre school education to 3-6 years old.

The programme is implemented through a chain of projects, each of

which is located at a community block covering around one lac population in
rural and urban areas and 35,000 population in tribal areas. The ICDS project
located at community block targets to provide food supplement to 40% of
17,000 children aged under six years and 40% of the pregnant and lactating
women. ICDS is being implemented through one platform, i.e., Anganwari
centre or child Care centres. The staff includes CDPO (Chief Development
Project Officer), Supervisors, Anganwari workers and helpers.
Funds for ICDS:- the expenditure for running ICDS is currently made for three
broad sources:
1. Funds provided by the Central Government under general ICDS, used
to meet expenses on account of infrastructure, salaries of ICDS staff,
training, basic medical equipment, pre-school learning kit etc.
2. Funds allocated by state government under their respective budgets to
provide supplementary nutrition.
3. Funds provided under the Pradhan mantri Gramodaya Yojana (PMGY)
as additional central assistance, technically to be used to provide
monthly take home rations (THR). To children from 0-3 years age
group living below the poverty line and need of additional
supplementation.
Expansion of ICDS: - Starting with a modest 33 blocks/ projects, ICDS has
gradually expended to 6,118 projects of which 5,659 projects with 7, 48,229
Anganwari centres were operational by March 31, 2006. The coverage of
ICDS as expended steadily over the years in March 1992 it had 1.7 crore
beneficiaries. This number rose to 2.8 crore in June 1999. At the end of
December 2007, 5,959 ICDS projects and 9,32,000 Anganwadis and mini
Anganwari centres were functional. The beneficiaries count increased to 6.29
crore children and 1.32 crore pregnant mothers.

Mid-day meals scheme - MDMS (All Primary School children)

The national programme of nutritional support to primary education,

commonly known as the Mid-day Meal (MDM) scheme launched in 1995, is a
nation wide central scheme intended to improve the enrollment and regular
attendance and reduce dropout in schools. It is also intended to improve the
nutritional status of the primary school children. MDM is the largest school
nutritional programme in the world and is meant to provide at least 450
calories and 12 grams of protein to 12 crore children in over 9.5 lac primary
schools (government, government aided and local body schools). The scheme
is being implemented in all states and union territories. In order to improve
the quality of meal, the scheme was last revised in June,2006. The cooking
cost norm has been fixed at Rs. 2 per child per school day. Recognizing the
need for appropriate infrastructure, assistance for construction of 94,500
kitchen cum stores was sanctioned for the first time to states in 2006-07
(budget estimates). Similarly, assistance to states has been provided at the
rate of 5,000 per school to procure/ repair kitchen devices. The allocation for
MDM scheme was Rs. 5,348 crore in 2006-07. This allocation was raised to
Rs. 7,324 crore in the union budget for 2007-08.
The performance of mid-day meal scheme has varied across states. In
Uttar Pradesh, because of powerful food mafias and corrupt officials, there
has been very poor implementation. However, in Tamilnadu it has proved to
be quite a successful stuff introduced way-back in 1982, the scheme-called
free noon meal scheme (FNMS) – currently covers 17.26 lac children between
the ages of 6 months and 5 year. Currently, the scheme is being
implemented in 41,344 schools covering 58.76 lac children up to the tenth
grade. The FNMS has helped improve the nutritional status of children
considerably; from 41.40 in 1992-93 to 61.45 in 2005-06, and serve
malnutrition has been reduced from 0.45% in 1999 to 0.07% in March, 2006.
The infant mortality rate has also dropped from 53 per thousand live births in
1998 to 42 in 2003. Under the directions of the Supreme Court, private sector
has also been involved in the scheme in various states. Thousands of women
in Gram Panchayat are cooking and serving hot food to children in their
villages in these states. This has not only helped to feed children with quality
meals cooked and served piping hot during their lunch their lunch break but
has also let to women empowerment.

Critical Appraisal of ICDS and Mid-day Meal Scheme:

Three National Family Health Surveys have been carried out between 1992-
2006.NFHS-II(1998-1999) and NFHS-III(2005-2006).
1. The overall impact of Integrated Child Development Services (ICDS) on
malnutrition was remained very limited due to a meager allocation of
resources to this programme and faulty project design.
 2. The programme is unequally distributed between the states. It does
not cover the states like Bihar, U.P., and M.P. which are having high
degree of malnutrition properly.
3. Though the programme is meant to be a package of ‘integrated
services’ including nutrition services, nutrition counseling,
micronutrient supplementation and antenatal care for pregnant women
its focus is intended to focus to supplementary nutrition
programme(SNP). Further, the main focus of SNP has been on children
in the age group of 3-6yrs. Younger children have been comparatively
neglected if not excluded.

National Food Security Mission

The growth in food grains production has stagnated during recent past
while the consumption need of the growing population is increasing. To meet
the growing foodgrains demand, National Development council in its 53rd
meeting adopted a resolution to enhance the production of rice, wheat and
pulses by 10, 8 and 2 million tons respectively by 2011. The proposed
centrally sponsored scheme ‘National Food Security Mission (NFSM) is to
operationalise the resolution of NDC and enhance the production of rice,
wheat and pulses.

Key features
1. The scheme to be implemented in a mission mode through a farmer
centric approach.
2. All the stakeholders to be actively associated at the District levels for
achieving the set goal.
3. The Scheme aims to target the select districts by making available the
improved technologies to the farmers through a series of planned
interventions.
4. A close monitoring mechanism proposed to ensure that interventions
reach the targeted beneficiaries.

Objectives
1. Increasing production of rice, wheat and pulses through area
expansion and productivity enhancement in suitable manner.
2. Restoring soil fertility and productivity at individual farm level.
3. Enhancing farm level economy (farm profits) to restore confidence of
farmers of targeted districts.

Strategy
1. Expansion of area of pulses and wheat, no expansion of area in rice.
Bridging the yield gap between the potential and the present level of
productivity through –
• Acceleration of seed production.
• Integrated Nutrient Management and Integrated Pest Management.
• Promotion of new production technologies like hybrid rice, timely
planting of wheat and promotion of new improved variety of pulses.
• Supply of input ensuring their timely availability.
Components of NFSM
Rice
• Demonstration of improved technology including hybrid and system of
rice intensification (SRI).
• Promotion of mechanical weeders and others farm implements.
• Extension, training and mass media campaign.
• Awards for the best performing district in each state.
Wheat
• Providing subsidy on diesel pump sets and community generators for
irrigation.
• Promotion of micronutrient use in deficient areas.
• Assistance for innovative interventions at local level
Pulses
• Increasing for innovative replacement rate to 25%

Flow of Fund
• Fund for the mission programmes to be directly released to the State
NFSM agency after approval by the National Executive Committee.
• State Mission agency would ensure implementation of the
programmes, in a time bound manner and would make available funds
to the district level implementing agency in accordance with their
approved programmes.
• Funds would be released in installments based on progress reports.

Monitoring

• The NFSM will be monitored by national, state and district executive

committee.
• The project management team would be constituted at district, state
and national level to assist in the monitoring and implementation of
the programme.
• Mission director at national and state level will be assisted by project
management team in implementation and monitoring.

A paradigm
NFSM - RICE
• Districts covering more than 50,000 hectare area under rice.
• The productivity is less than the state average productivity.
NFSM – WHEAT
• Districts with sizeable area under wheat.
• Districts having irrigation to a great extent.
• The productivity is less than national/ state average.
NFSM – PULSES
• The districts selected based on potential for area expansion through
inter-cropping/ follow land.

District level Action plan

 • The annual action plan to be prepared by district food security mission
executive committee headed by collector.
• A baseline survey to be conducted by district agency to record current
levels of production.
• The annual action plans for the districts to be based on potential and
available technology.
• State level action plan to be prepared based on district level action
plan.
• For selection of beneficiaries Pnachayat Raj institutions to be
associated a village level.

Area of Operation

NFSM- RICE – Total States – 12

• Andhra Pradesh, Assam, Bihar, Chattisgarh, Jharkhand, Karnataka,
Madhya Pradesh, Maharashtra, Orissa, Tamilnadu, Uttar Pradesh and
west Bengal.
• Total identified districts – 133.

NFSM – Wheat: Total States: 9

• Bihar, Gujarat, Haryana, Madhya Pradesh, Maharashta, Punjab,
Rajasthan, Uttar Pradesh and West Bengal.
• Total identified districts: 138

NFSM – Pulses:Total States:14

• Andhra Pradesh, Bihar, Chattisgarh, Gujarat, Haryana, Karnataka,
Madhya Pradesh, Maharashtra, Orissa, Punjab, Rajasthan, Tamilnadu,
Uttar Pradesh and West Bengal
• Total identified districts:168

Total States under NFSM: 16

Total identified districts under NFSM: 305

Flaws in food Security System

The PDS in India has been criticized on various counts. The main criticism is
as follow;
1. Limited benefit to poor from PDS: - Many empirical studies have shown
that the rural poor have not benefited much from the PDS as their
dependence on the open market has been much higher than on the
PDS for most of the commodities. In study published in 2002, R.
Radhakrishna, made the following important observations as far as
access of the poor to PDS is concerned:
• Many empirical studies have shown severe biases in the inter-
regional distributions of the PDS supplies – states with high
incidence of poverty such as Bihar, Orissa and Madhya Pradesh
received a lower share.
• The PDS is not functioning at all in the states with high
concentration of the poor, due to lack of the desire initiatives on
 the part of the state governments. The prospects of these states
in providing safety nets to the poor on the basis of spending
from their own resources would seem to be bleak since they are
facing a severe fiscal crunch. Even the TPDS ( Targeted Public
Distribution System) introduced in 1997, has not made a
significant impact on the access of food since delivery systems
in the poorer states are weak.

2. Regional disparities in PDS benefits: - there are considerable

regional disparities in the distribution of PDS benefits. For example, in
1995, the four southern states of Andhra Pradesh, Karnataka, Karla
and Tamilnadu accounted for almost one half (48.7%) of total PDS off
take of foodgrains in the country while their share in all India
population below the poverty line in 1993-94 was just 18.4%. as
against these, the four northern of Bihar, Madhya Pradesh, Rajasthan
and Uttar Pradesh ( or BIMARU states) having as much as 47.6 % of all
India population below the poverty line in 1993-94 accounted for just
10.4% of all India off take of foodgrains from PDS in 1995.
3. The question of urban bias: - Number of economists have pointed
out that PDS remained limited mostly to urban areas for a considerable
period of planning where the coverage of rural areas was very
insufficient.
4. The burden of food subsidy: - PDS is highly subsidized in India and
this has put a severe fiscal burden on the government. Subsidy on PDS
arises from the differences between the issue price and the economic
cost of the FCI. From Rs. 662 crores in 180-81, food subsidy rose to Rs.
2850 crores in 1991-92 and further to Rs. 23,828 crore in 2006-07.
5. Inefficiencies in the operation of FCI:- the economic cost of FCI
foodgrains operations have been rising on the account of increase in
procurements prices and other costs ( which include procurement
incidentals, distribution cost and carrying cost).
6. PDS results in price increases: - some economists have pointed out
that the operations of the PDS have, in fact, resulted in all round price
increase. This is due to the reason that large procurements of
fodgrains every year by the government actually reduces the net
quantity available in the open market.
7. Leakages from PDS: - Another criticism of PDS relates to the
problem of leakages from the system in the form of losses in the
transport and storage and diversion to open market. The major part of
the leakage is due to diversion of foodgrains to the open market
because of the widespread prevalence of corrupt practices.

Targeted Public Distribution System(TPDS)

Reasons for implementing Targeted Public Distribution

System(TPDS):

• Functioning of PDS was severely critisised for its failure to

serve people under BPL.
 • For its bias in favour of urban areas.
• Negligible coverage in poor states with larger poor population.
• Lastly because of wide leakage of PDS food grains procured
from FCI to open market and supply of inferior grains in ration
shops (FPS).

What is Targeted Public Distribution System(TPDS)?

Under TPDS special cards are issued to BPL families to sell them
foodgrains at specially subsidized prices with effect from June 1997. The
main aim was to direct the subsidy to BPL families. It was expected that 65
million BPL family would get the benefit. Under TPDS each poor family is
entitled to 10kgs/month of foodgrains at highly subsidized prices. In April
2000, it was increased to 20kgs/month at 50% of the economic cost. Again in
July 2001, it increased to 25kgs/month. Under Antodaya Anna Yojna poorest
of the poor families got rice Rs.2/kg & wheat Rs.3/kg.

Share of different items in PDS sales:

Commodity % share (Rural + Urban)

Rice 26.7
Wheat 10.1
Minor cereals 0.8
Pulses 0.2
Total Food grains 37.8
Edible oils 8.6
Sugar 35.0
Kerosene 14.6
Others 4.0
Total 100

Trade Practice Analysis of Foodgrain Market:

Supply side analysis of the food market shows that, there is not greater
change in foodgrain production in India. But recently all Indians are facing a
problem of low availability of foodgrain in the market and its higher prices. It
is questionable, because generally trend of rising price can be found whether
production of particular goods is decreased. But unfortunately production of
foodgrain is near about stable while prices are rising rapidly in India. It is
happen in the retail market due to the speculative practice of the traders.
According to the supply department of the government of Indian and the
government of Maharashtra most of traders are kipping illegal stock of
foodgrain and pulses. They are doing such for only profit motive and ignore
the morality. Hence, we can say that it is not only natural problem but also
manmade. In another word we can say that "Hunger created by nature but
supported by traders"

How Can Tackle It?

It may be possible to make food security in India in good manner. If we

doing the proper planning of foodgrain production and fair practices in food
market. There is need of strong control over the food market in India. In
developing countries like India, the root causes of food insecurity include,
poverty, corruption, national policies that do not promote equal access to
food for all, environmental degradation, barriers to trade, insufficient
agricultural development, population growth, low levels of education, social
and gender inequality, poor health status, cultural insensitivity, and natural
disasters. If the government concentrate the problem specific it is possible by
the existing majors, but there is need of implementation of that in proper
manner and accurately. Public distribution system is very good way to
overcome the problem of speculation by the private traders.
Another way to food security is increase in fruit, milk and fish
production, Fish is not only a vital food it is also a source of livelihood for
millions of people around the globe. We can solve that problem by the
increase in inland and sea fish production in India. The policy of mitigating
nutritional deficiencies and food security by fisheries is a pragmatic move in
India, considering the fact that sea has ample scope for continuous supply of
protein rich food. We need to exploit the food from sea to counter the
menace of malnutrition. India, with its vast coastline and seas can use
science and technology to make full use of fisheries in ensuring food security
to its vast populace.
The objectives of the Public Distribution System-PDS are good but it
was failed to accomplish that objective due to the corruption. PDS is better
way to tackle the problem of food speculation of private traders. If the
government will succeed the in the motive of PDS the intensity of food
insecurity problem will be reduced in future. However, the cruel reality is that
despite this huge food production, a huge buffer stock and an extensive
network of PDS, millions of people are food insecure and many even die of
starvation. Food Insecurity and tragedy hit different parts of the country
every year.
The present food crisis is due to lack of proper distribution and the
trading system impeding free flow of food. Even increase in agricultural
productivity also one of the solution for this problem. This should be based on
integrating inputs and outputs-the supply of high yielding varieties of seeds,
fertilizers, and irrigation, supported by credit alongside remunerative output
prices. A second "green revolution" is essential to stimulate food production
in many India. . It is crucial to ensure that farm and trade policies of
developed countries do not artificially reduce the prices of their foodgrains.
This makes it virtually impossible for farmers from developing countries to
compete both in their own domestic markets, due to cheap food imports, and
also in the international market.
The problem of food security comes mainly from the slow growth of
purchasing power of the people in the rain-fed eco-systems. Efforts must be
made to help them by developing drought resistant seeds, cost-effective dry-
land farming techniques. A major challenge to food security comes from
dietary diversification of the poor. If cereal pricing is left to the market forces,
government playing the facilitating role, land will be released from rice and
wheat cultivation to meet the growing demand for non-cereal crops such as
oilseeds, fruits and vegetables in accordance with diet diversification. At the
movement the problem is the problem of distribution of existing comfortable
level of supply. However with increasing population combined with low
agricultural productivity. Therefore we should do efforts to increase
productivity and re-correct the distribution problems.

Conclusion

Although, we can say that food security problem in India is not serious
if we success in the proper distribution policy. But problem is that, the
government has failed to control and regulate food market in India. This
problem becomes serious due to the unfair trade practice by private traders
doing in drought situation. The problem of hunger is due to poor economic
accessibility. It is result of poor implementation of policy measures. In
developing countries like India having a huge population, scarcity of food is a
major socio-economic problem. In such situation rich become richer and poor
become poorer. Thus, percentage of poor people below poverty line increases
who are suffering from malnutrition. Thus, food security plays a vital role. So
that at least all people can access to basic food requirements.

Reference: