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The National Food Security Bill has been generating much excitement across the country, but not in Tamil Nadu. This is because the state is slated to pioneer to have a more comprehensive model in the form of Universal Public Distribution System (PDS). Irrespective of any governments, the coverage of the PDS has been universal and continues to expand.
A state government official said that at a time when the state is undergoing a drought, the people's dependance on PDS has become higher as it was evident in the offtake of rice across the state. While, on an average, 82% of the monthly allocation of rice is being used by rice card holders, some districts have reported 90 to 95% of the utilisation of their respective allocation.
The PDS in Tamil Nadu is a success story, in its coverage as well as its pricing. The state government is implementing the system and no exclusion is made based on the income criteria. The system which the state government described as 'poor friendly' ordering rice at free of cost through the system to all eligible card holders from June 1, 2011.
According to the Tamil Nadu Civil Supplies Corporation 1,97,82,593 people are benefited through the system and it is being implemented through 33,222 fair price shops functioning under the various agencies in the state.
These fair price shops distributes 2,96,453 MT of rices every month, 34,890 MT of wheat, 65,140 kilo litres of kerosene every month.
Tamil Nadu Civil Supplies Corporation procures rice and other essential commodities required for PDS from Food Corporation of India and through tenders. Distribution of commodities through fair price shops is being carried out by Tamil Nadu Civil Supplies Corporation and the Cooperative societies.
However, recently the Union Minister for Food and Public Distribution K V Thomas assured the State officials that the present allotment of rice for Tamil Nadu will be protected, the latter are not sure how long the existing allotment will be retained. The existing allotment falls short of the monthly requirement by 20,000 tonnes. The Centre’s monthly allotment is 2.96 lakh tonnes whereas the State requires at least 3.16 lakh tonnes. The gap of 20,000 tonnes is met through purchase under the Open Market Sales Scheme of the Food Corporation of India and special allotments from the Centre.
“In order to ensure food availability to all and thereby, to eradicate hunger from the state, the government is providing free rice to all rice card holders from June 2011 onwards. This government is also supplying tur dhal, urad dhal and palm oil at subsidised prices under the special Public Distribution System so as to insulate the poor from the increasing prices of essential commodities,” earlier O Pannerselvam, Finance Minster of Tamil Nadu Government said.
A sum of Rs 4,900 crore has been provided in the budget estimates 2013-2014 for food subsidy.
| Sr No | Name of the commodity | Price per kg | Scale of supply |
| 1 | Rice | Free of Cost (as per Chief Minister's announcement) (w.e.f. 01.06.2011) | 4 kgs per adult and 2 kgs per child per month subject to a minumum of 12 kgs and maximum of 20 kgs per month per card except Nilgiris district. In Nilgiris district, minimum 16 kgs, maximum 24 kgs per card under AAY 35 kgs per month |
| 2 | Sugar | Rs 13.50 per kg | 500 grams per head per month subject to a maximum of 2 kgs per month, Additional 3 kgs supplied to sugar option card holders in lieu of rice |
| 3 | Wheat | Rs 7.50 | 10 kgs per card per month in chennai city and district headquarters; and 5 kg card per month in other areas |
| 4 | Kerosene | Rs 13.60 tp Rs 14.20 per litre | Ranges from 3-15 litres per card depending on the location |
Towards achieving food security, the 12th Plan (2012-17) objectives in Tamil Nadu are two fold, according to state government officials, complete elimination of hunger and stabilisation of food prices and fortification of cereals in PDS. The strategies are Universal PDS, distributing essential commodities at subsidised rate through PDS and price Stabilisation Fund for procurement of essential commodities.
Tamil Nadu Civil Supplies Corporation procures rice and other essential commodities required for PDS from Food Corporation of India and through tenders. Distribution of commodities through fair price shops is being carried out by Tamil Nadu Civil Supplies Corporation and the Cooperative societies.
Why state is opposing “National Food Security Bill, 2011
Earlier Tamil Nadu Chief Minister J Jayalalithaa said the National Food Security Bill, 2011, (NFSB) if enacted, would slash Tamil Nadu’s foodgrain entitlement by as high as 25%. She also urged the Centre not to thrust or force several features of NFSB on states.
While Tamil Nadu is now allocated 2.96 lakh tonnes of foodgrain per month by the Centre, features of the NFSB, which wants the states to move over to a Targeted Public Distribution System (TPDS), will cut the foodgrain entitlement to 2.24 lakh tonnes.
However, recently the Union Minister for Food and Public Distribution K V Thomas assured the State officials that the present allotment of rice for Tamil Nadu will be protected, the latter are not sure how long the existing allotment will be retained. The existing allotment falls short of the monthly requirement by 20,000 tonnes. The Centre’s monthly allotment is 2.96 lakh tonnes whereas the State requires at least 3.16 lakh tonnes. The gap of 20,000 tonnes is met through purchase under the Open Market Sales Scheme of the Food Corporation of India and special allotments from the Centre.
State government officials have their own reasons to be apprehensive about the continuance of the present allotment as they refer to the Centre’s sudden withdrawal of levy obligation for sugar mills to contribute sugar to the PDS.
The Tamil Nadu government has strongly protested the Centre's decision to partially decontrol the sugar sector. "The sudden withdrawal of levy obligation on sugar mills will expose the supply of PDS sugar to the vagaries of the market and the resultant volatility. Further, any price fluctuation over Rs 32 per kg in the open market will have to be borne by the State, which is already saddled with a huge subsidy burden," Jayalalithaa said.
At present, levy sugar released to Tamil Nadu by Centre was 10,835 MT per month, which met only one third of the total requirement for distribution under PDS.
Officials further noted, the provision of the Bill that only 50% of urban population will be covered. As per the 2011 Census, nearly 50% of Tamil Nadu’s population is in urban areas. The implication of the provision of the Bill is that one-fourth of the population — close to 1.8 crore — will not be eligible for food entitlements, according to reports.
Another aspect of the Bill is that there is no reference to the APL. At present, the Central government’s selling price of rice to the State for this category is Rs 8.3 per kg. The officials are clueless whether the Centre will continue with the same price, as the Bill talks of providing rice at Rs 3 a kg to the combined population of priority households and AAY beneficiaries.
But, it is not that there is nothing in the Bill which is beneficial to Tamil Nadu. The State hopes to get about 1.05 lakh tonnes, meant for BPL families, at a rate of Rs 3 per kg. This will be apart from the allotment for AAY at the same rate. Till now, the quantity of rice meant for BPL has been priced at Rs. 5.65 per kg.
The state Government has said it will continue to implement the Universal Public Distribution System (PDS) irrespective of the outcome of the Food Security Bill proposed by the Central Government.
