Letters: Food security and subsidies

This refers to the report “Pranab says losing sleep over rising subsidy bill” (February 9). It has taken more than seven years for the United Progressive Alliance’s common minimum programme to find expression in the form of an intention to introduce the Food Security Bill. The need to ensure the minimum nutritional needs of the under-privileged is overdue and, in this context, the Food Security Bill is welcome. Only a small section of the urban population can afford the prices of imported processed-food and bottled drinking-water. The well-being of the remaining one billion people is dependent on the food and water available locally.

From a short-term point of view, as there is some time left for the presentation of the 2012-13 Budget, the finance minister should keep in view the following factors while considering “subsidy” as an instrument to support food security:

 

Discourage states and political leadership, by way of policy disincentives, from competing for the supply of large amounts of foodgrains at lower prices (it has reached a ridiculous level of one rupee a kilogram of rice in some states). 
 

Put systems in place for the supply of food packets instead of foodgrains at subsidised prices, at least to workers and employees dependent on outside food. This will open opportunities for processing and supply chains that will create employment. Initially, caterers or hotels coming forward to participate in these efforts could be supported with soft loans and subsidies for supplying quality food packets at pre-decided costs. 
 

By policy incentives, encourage the production of foodgrains, vegetables, milk, eggs and meat. Subsidy or incentives in these areas to make production units viable will reduce future burden of food subsidy.

M G Warrier, Thiruvananthapuram

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