The Hindu Editorial Analysis- 9th November 2023 | Current Affairs & Hindu Analysis: Daily, Weekly & Monthly - UPSC PDF Download

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Why in News?

The Union government’s Pradhan Mantri Garib Kalyan Anna Yojana (PMGKAY) to provide 5 kg of free foodgrains per month to 81 crore Indians will be extended for another five years.

What is PMGKAY?

• PMGKAY is a food security welfare scheme introduced by the Government of India (GoI) in March 2020 in response to the COVID-19 pandemic.
• This program is administered by the Department of Food and Public Distribution within the Ministry of Consumer Affairs, Food, and Public Distribution.
• It is noteworthy for its remarkable scale, positioning it as the largest food security program globally.

Targets of the scheme

• PMGKAY aims to nourish the most impoverished individuals in India by delivering grain via the Public Distribution System to priority households, which include ration card holders and individuals identified through the Antyodaya Anna Yojana program.
• Under PMGKAY, each eligible person receives 5 kg of rice or wheat per month, tailored to regional dietary choices, and each family with a ration card is provided with 1 kg of dal.

At what rate are food grains provided under the NFSA?

• Beneficiaries of the National Food Security Act (NFSA) are entitled to obtain highly subsidized food grains.
• According to this food law, beneficiaries can purchase rice at Rs 3 per kilogram, wheat at Rs 2 per kilogram, and coarse grains at Re 1 per kilogram.

Success

• Pandemic Mitigation: The government swiftly implemented this program as the initial response to the pandemic's impact on India.
• Wide Section of Beneficiaries: The scheme successfully extended its reach to nearly 80 crore people, effectively reaching its intended population.
• Support to Migrants: It acted as a crucial safety net for migrant individuals who faced job and livelihood losses during the pandemic.
• Food and Nutrition Security: The program also played a significant role in ensuring nutrition security, particularly for the children of migrant workers.

Limitations of the scheme

• Corruption: Unfortunately, the scheme has suffered from widespread corruption, with numerous reports of irregularities, leakages, and the failure to deliver food grains to their intended recipients.
• Leakages: Despite having 79.25 crore beneficiaries under the National Food Security Act (NFSA), only 55 crore individuals have actually received their entitled 5 kg of grains.
• Inaccessibility: Many people were unable to access their allotted ration cards, thereby being deprived of their rightful share of benefits.
• Low Consumption: The loss of livelihoods resulted in a significant reduction in aggregate demand, leading to a historic decline in people's consumption expenditure, mainly due to a lack of cash.
• Resale of Subsidized Grains: Unfortunately, the scarcity of cash prompted some beneficiaries to sell the free grains they received in local markets for monetary gain.

National Food Security (NFS) Act

• The NFS Act of 2013 is designed to offer subsidized food grains to approximately two-thirds of India's 1.2 billion people.
• This legislation was enacted on September 12, 2013, with retroactive effect from July 5, 2013.
• It transforms existing food security programs of the Government of India (GoI) into legal entitlements, encompassing initiatives such as the Midday Meal Scheme, Integrated Child Development Services (ICDS), and the Public Distribution System (PDS).
• Furthermore, the NFSA 2013 acknowledges maternity entitlements.
• While the Midday Meal Scheme and ICDS are universal in nature, the PDS is designed to benefit approximately two-thirds of the population, with a 75% coverage in rural areas and 50% in urban areas.
• The law also ensures that pregnant women, lactating mothers, and specific categories of children are eligible for receiving daily free cereals.

Key provisions of NFSA

• The NFSA establishes a legal entitlement for individuals in "eligible households" to obtain food grains at a subsidized price.
• This includes the provision of rice at Rs 3/kg, wheat at Rs 2/kg, and coarse grains at Rs 1/kg through the Targeted Public Distribution System (TPDS).
• These subsidized prices are referred to as central issue prices (CIPs).