The National Institution for Transforming India (NITI) Aayog has sparked debate with its recent recommendation to reduce rural and urban coverage under the National Food Security Act (NFSA), 2013, to 60% and 40% respectively. The think tank has further proposed a revision of beneficiaries in line with the latest population data, which is currently based on the 2011 Census.
About the National Food Security Act (NFSA), 2013
Notified on September 10, 2013, the NFSA’s prime objective is to ensure food and nutritional security for people. It takes a human life cycle approach, aiming to furnish access to adequate quantities of quality food at affordable prices, thereby enabling people to live a life of dignity.
Currently, the Act provides coverage for 75% of the rural population and up to 50% of the urban population. These demographics are eligible for receiving subsidized food grains through the Targeted Public Distribution System (TPDS). In total, the NFSA caters to about 67% of the entire population.
The Provisions of the Act
Among others, key provisions of the Act include the provision of five kilograms of food grains per person, per month, at rates of Rs. 3/2/1 per kilogram for rice/wheat/coarse grains. Existing Antyodaya Anna Yojana households are entitled to continue receiving 35 kilograms of food grains per household, per month.
The Act also confers a meal and maternity benefit of not less than Rs. 6,000 to pregnant women and lactating mothers during pregnancy and six months after childbirth. It ensures meals for children up to 14 years of age and offers a food security allowance in case of non-supply of entitled food grains or meals.
Current Beneficiaries of the Act
As of February 2021, approximately 2.37 crore households, or 9.01 crore individuals, are covered under Antyodaya Anna Yojana, whereas around 70.35 crore people fall under priority households.
NITI Aayog’s Recommendations and Their Significance
If the 67% total rural-urban coverage ratio is maintained, the total number of beneficiaries will increase from the existing 81.35 crore to 89.52 crore, an increase of 8.17 crores based on the projected 2020 population. However, this will require an additional subsidy of Rs. 14,800 crore.
In case the national coverage ratio is revised downwards, as proposed by the NITI Aayog, the government could save up to Rs. 47,229 crore. This saved amount could be used in other critical sectors such as health and education.
Challenges of the Proposed Move
The proposed changes could burden the poor more in the wake of the Covid-19 pandemic, which has already caused unemployment and food insecurity. Some states may also oppose the move.
Other Recommendations
A High Level Committee (HLC) under Shanta Kumar previously recommended reducing the coverage ratio to 40% from 67%. According to the HLC, 67% coverage was too high and should be reduced to around 40%, which would comfortably cover families below the poverty line and some even above it.
The Economic Survey 2020-21 suggested revising the Central Issue Prices (CIP) for food grains released from the central pool, which have remained unchanged for several years. These food grains are available to beneficiaries at subsidized rates under the NFSA, with prices controlled by the Central Government.
