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200 Words12.5 Marks
Q.Food security bill is expected to eliminate hunger and malnutrition in India. Critically discuss various apprehensions in its effective implementation along with the concerns it has generated in WTO?
UPSC Mains 2013•Economy
Model Answer
View this Question In PYQ RealmApproach to the Question:
- Introduction (Definition) (30-40 words):
- Introduce the National Food Security Act (NFSA), 2013, highlighting its goal of providing subsidized food grains to two-thirds of India's population to eliminate hunger and malnutrition.
- Body (170-180 words):
- Discuss key implementation apprehensions (e.g., PDS leakages, logistical challenges, identification errors, high fiscal cost, lack of nutritional diversity, and regional disparities).
- Analyze the concerns raised at the World Trade Organization (WTO) (e.g., trade-distorting subsidies, public stockholding limits, impact on global prices, and potential trade disputes).
- Conclusion (30-40 words):
- Conclude that while the NFSA is a vital social safety net, its success depends on reforming the domestic distribution system and navigating international trade obligations.
Introduction
The National Food Security Act (NFSA), 2013 (often referred to as the Food Security Bill) was enacted to provide subsidized food grains to approximately two-thirds of India's population. While aimed at eliminating hunger and malnutrition, the scale of the program has raised significant domestic implementation concerns and sparked intense debates at the World Trade Organization (WTO).
Body
Apprehensions in the Effective Implementation of the Food Security Bill
- Logistical and Distribution Challenges: The Public Distribution System (PDS) suffers from structural inefficiencies, including inadequate cold storage, poor transportation, and damp warehousing, leading to significant grain spoilage.
- Identification and Inclusion Errors: Accurately targeting beneficiaries remains difficult. Exclusion errors leave out deserving, marginalized households, while inclusion errors allow non-eligible families to access benefits.
- Financial Sustainability: The massive annual subsidy bill (exceeding ₹1.25 lakh crore) places a heavy burden on the fiscal deficit, potentially diverting public funds from other vital sectors like healthcare and education.
- Nutritional Limitations: The NFSA's heavy focus on distributing staple grains (wheat and rice) fails to address the broader challenge of hidden hunger and malnutrition, which requires access to a diversified diet rich in proteins and micronutrients.
- Corruption and Leakages: Widespread leakages in the PDS supply chain mean that a significant portion of subsidized grain is diverted to the open market instead of reaching the intended beneficiaries.
- Inter-State Disparities: Variations in administrative capacity and infrastructure across states lead to highly uneven implementation, with poorer states often struggling the most.
Concerns Raised at the WTO
- Trade-Distorting Subsidies: Several member nations argue that India's Minimum Support Price (MSP) and procurement system constitute trade-distorting domestic support that exceeds the 10% de minimis limit allowed for developing countries under the WTO Agreement on Agriculture.
- Public Stockholding Programs: India's large-scale procurement and stockpiling of food grains are viewed with concern, as critics fear that releasing surplus public stocks into the international market could distort global agricultural trade.
- Impact on Global Grain Prices: Massive state procurement can influence domestic and international grain prices, leading to market volatility and affecting the competitiveness of other agricultural exporting nations.
- Risk of Trade Disputes: India's insistence on a permanent solution for public stockholding has led to diplomatic friction at WTO ministerial conferences, raising the risk of retaliatory trade measures.
Conclusion
The National Food Security Act is a landmark social security measure, but its potential can only be fully realized by addressing domestic distribution leakages and diversifying the food basket. Internationally, India must continue to negotiate at the WTO to secure a permanent solution for its public stockholding programs, ensuring that national food security is not compromised by global trade rules.
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