Food Security Bill 2013

Indian Government Passed an Ordinance Bill " Food Security Bill 2013 " This is a social program that would bring cheap food to hundreds of millions of poor people throughout the country. 

Highlights of this Bill:-

1. Up to three-quarters of people in the rural areas and up to half of the urban population would get five kilograms of grains per month at subsidized prices (3 rupees per kilo for rice, 2 rupees per kilo for wheat and 1 rupee per kilo for coarse grains).

2. The poorest households would continue to receive 35 kilograms of grains per month under the “Antyodaya Anna Yojana” at subsidized prices.

3. Pregnant women and lactating mothers would receive a maternity benefit of at least 6,000 rupees

4. Children aged six months to 14 years would get take-home ration or hot cooked food.

5. The central government also would provide “assistance” towards the cost of intra-state transportation, handling of grains.

6. The central government also would provide money to states and union territories if it runs low on grain.

Facts of Food Security Bill:-

1. Two out of three Indians, or around 810 million people, would get five kilograms of subsidized food grains every month. The program would offer food subsidies to 75% of the rural population and 50% of the urban population.
2. The government believes the program would push India’s food subsidy bill by 45% to 1.3 trillion rupees ($21 billion) a year. Critics estimate the cost could be as high as two trillion rupees a year.
3. The plan would dent India’s fiscal credibility. The program is projected to push up India’s fiscal deficit to 5.1% of GDP in the current fiscal year. The government has promised to keep that deficit under 4.8%.
4. Another big worry is that the plan will be implemented via the inefficient and corrupt public distribution system. About 10% of India’s food rots in warehouses before it is distributed.
5. But the plan could be a boon for the poorest Indians hit hard by rising inflation. The plan could cut expenses of households by up to 8%, according to Crisil Research.
6. Despite the economic boom over the last decade, India ranks 65th out of 79 countries on the Global Hunger Index. Nearly half of India’s children under five are chronically malnourished.