Ensure food and nutritional security by guaranteeing access to affordable, quality food.
Empower individuals to lead a life of dignity through subsidized foodgrain distribution.
Current Coverage:
Covers 75% of rural population and 50% of urban population under the Targeted Public Distribution System (TPDS), amounting to 67% of the total population.
Eligibility:
Priority Households: Identified by state guidelines.
Antyodaya Anna Yojana (AAY) Households: Focuses on the poorest households.
Key Provisions
Subsidized Foodgrains:
Entitlement of 5 kg per person per month at subsidized rates:
Rice: ₹3/kg.
Wheat: ₹2/kg.
Coarse grains: ₹1/kg.
AAY households receive 35 kg per household per month.
Nutritional Support:
Pregnant Women and Lactating Mothers: Entitled to meals and a maternity benefit of ₹6,000 during and after pregnancy.
Children (up to 14 years): Provided with nutritious meals under programs like the Mid-Day Meal Scheme and Integrated Child Development Services (ICDS).
Food Security Allowance:
Compensation in case of non-supply of foodgrains or meals.
Grievance Redressal Mechanisms:
Established at both district and state levels to address complaints.
Current Scale of NFSA Beneficiaries
Antyodaya Anna Yojana:
Covers approximately 2.37 crore households (9.01 crore individuals).
Priority Households:
Benefits around 70.35 crore individuals.
Key Recommendations by NITI Aayog
Revising Coverage Ratios:
Rural: Reduce coverage from 75% to 60%.
Urban: Reduce coverage from 50% to 40%.
Updating Beneficiary Base:
Use latest population estimates to determine eligible beneficiaries, replacing reliance on the outdated Census 2011 data.
Cost Implications of Current Coverage:
Maintaining current rural-urban ratios would increase coverage from 81.35 crore to 89.52 crore, requiring an additional subsidy of ₹14,800 crore.
Revising the ratios could save up to ₹47,229 crore, allowing funds to be redirected to critical sectors like health and education.
Significance of Proposed Changes
Cost Efficiency:
Savings of over ₹47,000 crore could strengthen public health and education initiatives.
Focus on Need-Based Coverage:
Narrowing coverage ensures targeted benefits for the most vulnerable sections of society.
Challenges of Reducing Coverage
Impact on Vulnerable Groups:
Reduction in coverage during economic hardships, especially post-COVID-19, could exacerbate food insecurity and unemployment challenges.
State Opposition:
States may resist revisions due to political and social concerns about reduced benefits.
Other Relevant Recommendations
High-Level Committee (Shanta Kumar Committee):
Suggested reducing population coverage under NFSA from 67% to 40%, arguing that 67% is excessive and covers many above the poverty line.
Economic Survey 2020-21:
Advocated revising Central Issue Prices (CIP), which have remained unchanged despite rising procurement costs.
Central Issue Prices (CIP):
What are CIPs?
Subsidized rates at which the government provides foodgrains to beneficiaries.
Prices are fixed but must not exceed the Minimum Support Price (MSP) paid to farmers.
Current Rates Under NFSA:
₹3/kg for rice, ₹2/kg for wheat, and ₹1/kg for coarse grains.
Key Takeaways
Implement gradual reduction in coverage ratios while ensuring robust safety nets for the poorest sections.
Improve identification of beneficiaries using updated population data and socio-economic indicators.
Encourage stakeholder consultations, including states, before implementing changes to avoid widespread opposition.
Address infrastructure and delivery gaps to ensure effective implementation of food security programs.
The revisions, if implemented judiciously, can make NFSA more cost-effective and equitable, ensuring targeted benefits while reducing fiscal burden.
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