India’s Food Security Bill, by the mind-blowing numbers. India’s government is embarking on an ambitious program to make food a legal right for 2/3rd of its 1.2 billion population. Food Security Bill , which was passed by ordinance but needs to be ratified by parliament, is being promoted by UPA Govt as India’s best shot at combating chronic malnutrition & hunger. Critics argue that the program is designed to gain favor with rural voters ahead of national elections in 2014. Here’s a rundown of the mind-boggling scale of what is world’s largest food-subsidy system: 50% of India’s children under age 5 are chronically malnourished . 2 of 3 Indians, or 810+ million people, get 5 Kgs of subsidized food grains every month. The program would offer food subsidies to 75% of the rural population and 50% of the urban population. UPA Govt believes FSB 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 2 trillion Rs a year . 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. UPA promised to keep that deficit under 4.8% . Another big worry is that the plan will be implemented via the inefficient & corrupt public distribution system. 10% of India’s food rots in warehouses before it is distributed. But the plan could be a boon for the poorest Indians hit hard by rising inflation. FSB could cut expenses of households by up to 8%, Crisil Research. Despite the Economic boom over the last decade, India ranks 65th of 79 countries on the Global Hunger Index .
Posted on: Sun, 07 Jul 2013 04:43:42 +0000
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