The approval of Indias Food Security Bill comes before the countrys elections, making one wonder whether there was a populist motive behind it. There probably is such a motive by the ruling party. However, given the dire state of Indias food security and inequitable food distribution, one can help but laud the move.
But, like most populist schemes that look great on the surface, there are structural problems in this food security bill too. The bill seeks to provide 5kg of grain every month to some 800 million people at very subsidized rates - Rs.3 for a kilo of rice, Rs.2 for wheat and Re.1 for millet.
The first issue, however, is how would the lawmakers classify and identify the poor? The definition of poor itself is a very subjective term and there is no standard measure for putting a family or individual in that category. Depending on the cost of living in different areas, what is the benchmark income level that will be used for these disbursements?
Secondly, is the 5-kg mark for an individual justified? The calorific requirement for grains, such as wheat depends on an individuals physiology. But estimates place a per capita consumption of over 6kg of rice and wheat in a month alone. So clearly, 5kg will not meet the requirements for the underprivileged populace amply.
The third factor may seem a little inconsequential, but is an aspect that warrants attention too. Wheat, rice and millet fulfill only a part of a complete diet that includes fats and proteins. In fact, the lack of components such as protein is what predisposes people towards undernourishment. While ones not suggesting the more opulent meat, perhaps the provision of pulses and lentils should be encouraged too. Even small quantities of these grains will be a good start.
Besides these structural deficiencies, whether India can bear the additional burden of roughly Rs1.3 trillion is critical as the country is battling with at roughly 5.2 percent of GDP in the current fiscal year. However, the current policymakers emphasise that food subsidy is a high priority item and should not be linked with fiscal deficit.
Setting aside the curiosity as to how a stark subsidy can be ignored for the national fiscal account, Indias effort to make food a priority, hopefully with the right implementation and despite the structural shortfalls discussed before, is something that should be appreciated.
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