Ten mistakes NAC made on food bill

It provides old solutions, retains old problems

prasanna

Prasanna Mohanty | October 25, 2010



Jean Dreze, development economist and a member of the National Advisory Council (NAC) which finalized its recommendations on the proposed food security law, has aptly summed up the final outcome in his dissent note: “An opportunity has been missed to initiate a radical departure in this field. The NAC proposals are a great victory for the government – they allow it to appear to be doing something radical for food security, but it is actually “more of the same”.

A look at the NAC’s formulations will make it abundantly clear how the NAC’s formulations have, instead of solving anything, defeats the very purpose of a food security law and introduces more complexities and confusion that would only weaken the existing subsidized food regime. Here is a list of 10 mistakes it has made:

1. A right to food has to be a universal. The NAC proposes an entitlement to only 75 percent of population – 90 percent in rural and 50 percent in urban areas.

2. This is further divided into “priority” and “general” category, instead of the existing BPL and APL categories. It is a mere name-change and if at all, it adds to confusion.

3. The “priority” category is meant for 28 percent urban and 46 percent of rural population. This is a marginal improvement from the Tendulkar’s formulation for BPL (37 percent) which would have been implemented in any case since the government has already accepted it. As per Tendularkar’s BPL families constitute 26 percent urban and 42 percent rural population.

4. NAC introduces a new category and hence, the complexity. It “excludes” 50 percent in urban and 10 percent in rural areas (Point 1) from subsidized food regime.

In existing system, there are only two categories exist – BPL and APL. Nobody is excluded per se. The bureaucrats will now have a field day, magnifying the problems of exclusion and inclusion.

5. NAC proposes 35 kg of food (at Rs 3 for rice, Rs 2 for wheat and Rs 1 for millet), which is an extension of the Antyodyay scheme to the “priority” (or BPL) families.

6. In the name of nutritional needs, it has only added millet to the list, instead of adding oil, pulses and other coarse grain to the food basket.

7. Pension to the aged, which is in force as per the interim orders of the supreme court monitoring the food programmes in the country (PUCL vs the Union of India and others case), has been left out. So, this is dilution of the existing support system.

8. PDS has derailed our subsidized food regime. The NAC merely promises to look into reforming it in future. With the existing PDS, we can only expect more loot of food grain. It defeats the very purpose of legislating a new law.

9. NAC has introduced the problem of identification. Who is a “priority” family? Who is a “general” family? NAC does not define, but leaves it to the government. This recommendation is useless and adds needless complexity. It gives reason for the government to junk it and continue with BPL and APL categorisation.

10. A host of other existing food programmes, like ICDS, mid-day meal, anganwadi (community kitchen) etc will continue. So, why need a new law?

Dreze is right. The NAC’s formulations amount to not only “more of the same”  solutions, but also to “more of the same” problems.
So, why do we need a food security law?



 

Comments

 

Other News

From one cow to a dairy business

In 2012, Anita Dash wasn`t dreaming of building a dairy brand. She wasn`t studying business models or planning market expansion. Like countless mothers across India, her focus was on something much simpler: giving her children a better future.   At the time, her most valuable

Ethanol blending: The two sides of a story

India`s crude oil consumption is estimated to be around 88.5% imported from abroad. This one single figure is also responsible for why ethanol has become both an economic strategy and fuel policy at the same time. In an economy like India, which depends so heavily on foreign oil, any increase in internat

Food inflation: Not a macroeconomic statistic but a developmental indicator

India`s retail inflation shows a reassuring picture at first glance. According to the latest data, Consumer Price Index (CPI) inflation edged up to 4.38% in June 2026 from 3.93% in May 2026, but continued to remain within the Reserve Bank of India`s (RBI) target band of 4% (+/- 2%). However, beneath this

Skin in the game or masterful market timing?

When a company founder opens their personal chequebook to buy shares in their own business, stock markets usually applaud. To the average retail investor, it feels like the ultimate vote of confidence, a sign that the people running the show have real skin in the game and believe brighter days are ahead.

India’s freedom struggle was shaped by wider Asian political thought

As we mark 80th anniversary of independence, ‘Asianism and the Fall of Empire’ (HarperCollins India) by historian Mithi Mukherjee offers a new perspective on Ind

What is colonialism? A relook at modern history

The Chromatic World Order: The Fiction That Rules Our World  By Sajid Mohamed Aakar Books  

Upcoming Conferences



-->

Archives

Current Issue

Opinion

Facebook Twitter Google Plus Linkedin Subscribe Newsletter

Twitter