 "FAQ: Food Security Bill")
* Drafted by the Sonia Gandhi-led National Advisory Council in 2010, the Bill originally proposed legal food entitlement for 75% of India’s population
* A panel led by C Rangarajan recommended lowering entitlements and reforming PDS
* In Sep 2011, the food ministry circulated a draft report for public comments
* In July this year, the govt brought an ordinance covering 67% of the population
Who gets what
* 75% of rural and 50% of urban population — an estimated 800 mn people — are to receive 5 kg of wheat, rice and coarse cereals at Rs 3, Rs 2 and Rs 1 a kg, respectively
* The Bill doesn’t include pulses and edible oils, as the country lacks supply of these
Impact on agri sector
* As the govt will procure more grains, farmers might be dissuaded from growing cash crops
Difference from PDS
* The present PDS system does not have the legal umbrella
* The legal entitlement in the Bill provides beneficiaries the right to take the govt to court if they are denied the service
Implementation
* For now, the govt proposes to implement it through existing system of ration shops
* Later, it could be shifted to a modernised PDS that works on biometric ration cards
Why not universal?
* The grain required to cover the whole population is estimated at 77 mt, while the govt’s annual procurement has averaged around 60 mt
The cost involved
* The govt’s food subsidy bill will rise from the present Rs 90,000 crore to over Rs 130,000 crore
* Besides inflation fears, the rise in subsidy bill could affect govt’s ability to contain its fiscal deficit at 4.8% of GDP