Economics of food security

Abstract

Food Bill: Laudable objectives, weak assumptions. The Food Security Bill, 2013, (FSB) has been passed in the Lok Sabha and is under consideration in the Rajya Sabha. The Act will facilitate 62 million tonnes of foodgrains to be distributed to about 81 crore individuals, about 63 crore in rural and 18 crore in urban areas. The priority households, about 46 per cent in rural and 28 per cent in urban areas, are to have monthly entitlement of 7 kg per person per month at a subsidised price of Re.1 per kg for millets, Rs2 per kg for wheat and Rs 3 per kg for rice. And at least 3 kg of foodgrains per person per month to be given to a general category of households at subsidised prices. Assuming that the cost of FSB is Rs1,20,000 crore, per capita cost amounts to Rs1,482 annually or Rs 4 a day. The objectives of the FSB are laudable but the assumptions on which it is based are weak. Read more at: https://www.thehindubusinessline.com/opinion/economics-of-food-security/article5075995.ece