Food Security: Government’s Interventions

Implementation of the National Food Security Act, 2013 (NFSA)

Persistent efforts have resulted in universal implementation of the NFSA, 2013 in all 36 States & UTs, benefiting 80.72 crore persons in the country by providing them access to highly subsidized foodgrains at Rs1/2/3 per kg. for coarse grains/wheat/rice respectively.

The prices of foodgrains specified under NFSA – Rs3 per kg for rice, Rs2 per kg for wheat and Re.1 per kg for coarse grains which were valid upto July, 2016, have been continued upto June, 2018.

During the Financial Year 2017-18 (upto 13.12.2017), Rs2959.22 crore has been released to State Governments as Central assistance to meet the expenditure incurred on intra-State movement of foodgrains and fair price shop dealers’ margins.Such an arrangement has been made for the first time under NFSA.Under erstwhile TPDS, State Governments were required to either meet this expenditure on their own or pass it on to beneficiaries (other than AAY beneficiaries).

End-to-end Computerization of TPDS Operations

As an outcome of digitization of Ration Card/beneficiary records, de-duplication due to Aadhaar seeding, transfer/migration/deaths, change in economic status of beneficiaries, and during the run-up to and implementation of NFSA, a total of 2.75 Crore ration cards have been deleted/cancelled by State/UT Governments during the years 2013 to 2017 (up to November 2017). Based on this the Government has been able to achieve an estimated ‘Rightful Targeting of Food Subsidies’ of about Rs. 17,500 Crore per annum.

To modernize and to bring about transparency in the Targeted Public Distribution System (TPDS), the Department is implementing scheme on End-to-end Computerization of TPDS Operations at a total cost of 884 Crore on cost-sharing basis with the States/UTs. The Scheme provides for digitization of ration cards and beneficiary records, computerization of supply chain management, setting up of transparency portals and grievance redressal mechanisms.

To identify and weed-out duplicate/ineligible beneficiaries, and to enable rightful targeting of food subsidies, seeding of Aadhaar numbers of beneficiaries with their Ration Cards is being done by States and UTs. Presently, 81.35% of all ration cards have been seeded.

As part of the scheme, electronic Point of Sale (ePoS) devices are being installed at Fair Price Shops (FPSs) for distribution of foodgrains through authentication and electronic record-keeping of the sale transactions. As on date, 2.83 lakh FPSs out of total 5.27 lakh FPSs have ePoS devices in 23 States/UTs.

Launch of Hybrid Model of DBT

A pilot scheme on DBT (In-cash & In-kind) on the pattern of “PAHAL” has been launched in Nagri Block of Ranchi District, Jharkhand w.e.f. October 2017. Under this scheme, the subsidy amount (economic cost, less the Central issue price) is directly transferred into the bank account of the eligible NFSA beneficiaries in advance in the beginning of the month. The beneficiary then can purchase the foodgrains as per entitlement from the Fair Price Shop at economic cost of the foodgrains after authentication on Point of Sale (PoS) device. Central Issue Price is contributed by the beneficiary. This model enables continued support to the procurement exercise from farmers at MSP, while dis-incentivising any leakage of food grains from PDS.

Intra-State Portability of Ration Cards

Facility enabling PDS beneficiaries to lift their entitled foodgrains from any fair price shop in the State where ePoS device has been installed has been started in states of Andhra Pradesh, Haryana, Jharkhand, Karnataka, Chhattisgarh (750 FPSs), and Telangana (2273 FPSs).

Integrated Management of PDS(IM-PDS)

A new Central Sector Scheme has been approved to be implemented during FY 2018-19 and FY 2019-20 for establishing Public Distribution System Network (PDSN) to implement national level portability, central data repository and central monitoring system of PDS operations.

Launch of ePoSm Transactions Portal

Annavitran Portal (www.annavitran.nic.in) has been implemented to display electronic transactions made through ePoS devices for distribution of subsidized foodgrains to beneficiaries. This portal also shows all India picture of Aadhaar authentication of beneficiaries besides allocated and distributed quantity of foodgrains up to district level.

Improving Foodgrain Management

A new guideline on usage charges for packaging of procured paddy from KMS 2017-18 onwards has been implemented in consultation with all States and FCI. It is estimated that the said policy could result in savings of approx 600 crore each season.

About 40 million tonnes of food grains are transported by FCI across the country in a year. Movement of food grain is undertaken by rail, road, sea, coastal and riverine systems. In 2016-17, 13 containerized movement was undertaken which led to freight savings of around Rs. 44 lakhs. During 2017-18, FCI has moved 58 container rakes (as on 15.10.2017) leading to approx. freight savings of Rs. 159 lakhs.

Warehousing Development and Regulatory Authority (WDRA)

The process of registration of warehouses with WDRA has been simplified. The new rules will promote increase in the number of warehouses registered with WDRA. This would enhance facility of pledge finance for the farmers through Negotiable Warehouse Receipts (NWR) system. During the year Rs.90.35 crore loans have been availed against NWRs so far.

Electronic Negotiable Warehousing Receipt (eNWR) System and WDRA Portal has been launched to transform the process of registration of warehouses online and to issue e-NWR instead of paper-NWR which will be a more credible financing tool.

Pradhan Mantri Kisan SAMPADA Yojana

On 23rd August 2017 was Pradhan Mantri Kisan SAMPADA Yojana was Launched. The SAMPADA Scheme aims at creating infrastructure and increasing capacities of processing and preservation in entire supply chain of food processing sector right from farm gate to retail outlets. The new scheme will help in integrating food processing units and food trade with the farmers, creating huge opportunities for employment of increasing income of the farmers. PMKSY is an umbrella scheme incorporating ongoing schemes of the Ministry like Mega Food Parks, Integrated Cold Chain and Value Addition Infrastructure, Food Safety and Quality Assurance Infrastructure, etc. and also new schemes like Infrastructure for Agro-processing Clusters, Creation of Backward and Forward Linkages, Creation / Expansion of Food Processing & Preservation Capacities.