The year 2020 has witnessed an unprecedented surge in the procurement of food grains by states and Union Territories (UTs). This increase can be attributed to the relief measures implemented in response to the Covid-19 pandemic. The Food Corporation of India (FCI) reported that the total amount of rice utilized under the Centre’s various schemes rose from 90.71 lakh tonnes in 2019 to 192.34 lakh tonnes in 2020.
Reasons for Increased Grain Procurement
This escalation in food grain procurement is a direct result of increased entitlements and the needs of migrant laborers.
Following the Covid-19 outbreak, the government declared that Priority Household (PHH) and Antyodaya Anna Yojana (AAY) cardholders would receive an additional 5 kg per person per month free of charge, initially for three months (April to June). This relief measure was further extended until November 2020, providing supplementary resources in addition to their entitlement under the National Food Security Act (NFSA) 2013.
In another scheme, the Centre announced a reduced price for wheat and rice for ration cardholders not covered under the NFSA or Non-Priority Household (NPHH) cardholders. This scheme has been adopted by Tamil Nadu to provide additional rice entitlement to almost 85.99 lakh cardholders.
Addressing Needs of Migrant Laborers
A specific scheme was introduced aiming to cater to the needs of migrant laborers not covered under the NFSA or any other state schemes. Through this initiative, laborers received free food grains at 5 kg per person per month for May and June.
An Overview of Data Related to Grain Offtake
FCI data reveals that out of all the states, Uttar Pradesh, Bihar, West Bengal, Maharashtra, Andhra Pradesh, Tamil Nadu, and Karnataka availed over 60% of the total quantity of rice during the pandemic. As for wheat, the increase in offtake was not as high, around 30%. In comparison to 59.45 lakh tonnes lifted in three months of 2019, it was 78.16 lakh tonnes in 2020. Rajasthan drew the highest quantity of wheat at 14.84 lakh tonnes, closely followed by Uttar Pradesh, which procured 14.01 lakh tonnes.
Impact of the National Food Security Act
The National Food Security Act (NFSA), enacted on July 5, 2013, marked a significant shift in the approach to food security from welfare to a rights-based approach. The act legally entitled up to 75% of the rural population and 50% of the urban population to receive subsidized food grains under the Targeted Public Distribution System.
Under this act, Antyodaya Anna Yojana (AAY) households continue to receive 35 kgs of food grains per household per month. Households having Priority Households (PHH) ration cards are issued 8 kgs i.e., 5 and 3 kgs of rice monthly per beneficiaries at the rate of Rs.3 and Rs.15 respectively. The NFSA is aimed at targeting the poor and vulnerable sections of society such as landless laborers, marginal farmers, and wage earners of the informal economy.
Last Modified: February 8, 2024