Analysis of National Food Security Act, 2013

Abstract

The National Food Security Act (NFSA) aims to provide subsidized food grain to around 67 percent of India's 1.2 billion people. The Bill was passed in Lok Sabha on 26 August, 2013 after rejecting more than 300 amendments. The Bill received the assent of the President on 10th September, 2013. As per the Act, beneficiaries would get rice at 3/kg, wheat at 2/kg, and coarse grains at 1/kg. These rates would be valid for three years. The act also provides every pregnant woman and lactating mother free meal during pregnancy till six months after child birth. They will also receive a maternity benefit of 6,000 in installments. The Act enables all school going children up to 14 years to get free mid day meal every day. In case of non-supply of food grains, states will have to pay food security allowance to beneficiaries. The bill is expected to cost the government exchequer Rs 1.24 lakh crore ($22 billion) every year. The Act has been debated at many forums for the lacunae both in terms of finance and application. The UPA government was propagating the myth that it is the largest antipoverty and anti-hunger programme ever introduced anywhere in the world. On the other hand, economic pundits are blaming the Food Security Act for the additional burden on exchequer due to falling rupee; large current account deficit and the economic slowdown.

The scope of the research is limited to analyzing the opinion expressed by various researchers and data from Commission for Agricultural Cost and Price, as per Annexure - I.