Monday

09


January , 2023
Free food: good economics, clever politics
01:04 am

Buroshiva Dasgupta


Even though there is now a new threat of a Covid attack, the free food programme - Pradhan Mantri
Garib Kalyan Anna Yojana (PMGKAY) primarily introduced during the pandemic - will be discontinued
from December 31. At one stroke, the centre will now save rupees 1.8 lakh crores. As compensation,
the subsidized rationing scheme under the National Food Security Act (NFSA) will be made completely
free.
The food grain under the NFSA scheme is currently sold at a subsidised price of Rs 3 per kg for rice, Rs 2
per kg for wheat, and Rs 1 per kg for coarse grains. Under the scheme, 5 kg food grains per person are
provided to Priority Households (PHH) beneficiaries and 35 kg per household to Antyodaya Anna Yojana
(AAY) beneficiaries, who constitute the ‘poorest of the poor’. All of this will be free from 1 January
onwards.
Many opposition-led states (including West Bengal) were taking credit for the food distributed through
the public distribution system under the NFSA scheme, even though the bulk of the expenditure was
being borne by the Centre. Centre was subsidizing 98 per cent of the cost of food grain under NFSA
scheme (introduced by the previous UPA government) and charge the ration card holder just Rs 1-3 per
kg. The state government led by opposition parties would subsidise this Rs 1-3 per kg and brand it in
their states as if they are the ones making the food grain free, whereas it was the Centre shouldering
almost the entire fiscal burden.
Now, the NFSA has become an entirely central scheme, with the Centre shouldering 100 per cent of the
cost of the food grain, apart from the cost of transportation and holding costs it was already bearing. By
foregoing a revenue of Rs 15,000 crores in making the NFSA scheme totally free, the centre will
continue to be lauded for giving free rations to the 80 crore people who came under the PMGKAY
scheme, and yet will not have to pay an extra Rs 1.8 lakh crores. By a clever move, the centre has now
saved a lot of money as well as put the states, specially ruled by the opposition parties, in a politically
sticky wicket.
But in actuality, the food quota is now being halved. The five kilos of food grain per head under NFSA
scheme was being supplemented another five kilos under the PMGKAY scheme during the pandemic.
Now that the PMGKAY scheme is being withdrawn, the beneficiary families will get just five kilos of food
per head. The government puts forward two arguments in favour of this cut. Firstly, this move will push
the migrant workers go back to work, because by being provided a free meal, the workers were staying
back at home since pandemic times. Secondly, for example in a family of five, much of the 50 Kgs of food
grain provided was going back to the black market. That had to be stopped.
While appreciating the ‘good economics’ behind the move – and the clever politics (after all, all political
parties try to checkmate their opposition) – two disturbing thoughts emerge. By acknowledging to
provide free rations to over 80 crores people, the government is accepting the fact that over 60 % of
Indian live below the poverty line. Then how much of “sabka bikas “has happened in these Modi years?

Secondly, it is fact that there have not been any starvation deaths during the pandemic times, which was
predicted by many. The free rations by the government saved the situations. And this was possible
because of the self-sufficiency in food production which India has finally achieved. But the recent Global
Hunger Index has revealed that India is not hungry in the belly, but it is dangerously deficient in
nutrition. And that is what the government should be more concerned with, rather than playing politics
with the states.Even though there is now a new threat of a Covid attack, the free food programme - Pradhan Mantri
Garib Kalyan Anna Yojana (PMGKAY) primarily introduced during the pandemic - will be discontinued
from December 31. At one stroke, the centre will now save rupees 1.8 lakh crores. As compensation,
the subsidized rationing scheme under the National Food Security Act (NFSA) will be made completely
free.
The food grain under the NFSA scheme is currently sold at a subsidised price of Rs 3 per kg for rice, Rs 2
per kg for wheat, and Rs 1 per kg for coarse grains. Under the scheme, 5 kg food grains per person are
provided to Priority Households (PHH) beneficiaries and 35 kg per household to Antyodaya Anna Yojana
(AAY) beneficiaries, who constitute the ‘poorest of the poor’. All of this will be free from 1 January
onwards.
Many opposition-led states (including West Bengal) were taking credit for the food distributed through
the public distribution system under the NFSA scheme, even though the bulk of the expenditure was
being borne by the Centre. Centre was subsidizing 98 per cent of the cost of food grain under NFSA
scheme (introduced by the previous UPA government) and charge the ration card holder just Rs 1-3 per
kg. The state government led by opposition parties would subsidise this Rs 1-3 per kg and brand it in
their states as if they are the ones making the food grain free, whereas it was the Centre shouldering
almost the entire fiscal burden.
Now, the NFSA has become an entirely central scheme, with the Centre shouldering 100 per cent of the
cost of the food grain, apart from the cost of transportation and holding costs it was already bearing. By
foregoing a revenue of Rs 15,000 crores in making the NFSA scheme totally free, the centre will
continue to be lauded for giving free rations to the 80 crore people who came under the PMGKAY
scheme, and yet will not have to pay an extra Rs 1.8 lakh crores. By a clever move, the centre has now
saved a lot of money as well as put the states, specially ruled by the opposition parties, in a politically
sticky wicket.
But in actuality, the food quota is now being halved. The five kilos of food grain per head under NFSA
scheme was being supplemented another five kilos under the PMGKAY scheme during the pandemic.
Now that the PMGKAY scheme is being withdrawn, the beneficiary families will get just five kilos of food
per head. The government puts forward two arguments in favour of this cut. Firstly, this move will push
the migrant workers go back to work, because by being provided a free meal, the workers were staying
back at home since pandemic times. Secondly, for example in a family of five, much of the 50 Kgs of food
grain provided was going back to the black market. That had to be stopped.
While appreciating the ‘good economics’ behind the move – and the clever politics (after all, all political
parties try to checkmate their opposition) – two disturbing thoughts emerge. By acknowledging to
provide free rations to over 80 crores people, the government is accepting the fact that over 60 % of
Indian live below the poverty line. Then how much of “sabka bikas “has happened in these Modi years?

Secondly, it is fact that there have not been any starvation deaths during the pandemic times, which was
predicted by many. The free rations by the government saved the situations. And this was possible
because of the self-sufficiency in food production which India has finally achieved. But the recent Global
Hunger Index has revealed that India is not hungry in the belly, but it is dangerously deficient in
nutrition. And that is what the government should be more concerned with, rather than playing politics
with the states.

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