Tuesday, August 27, 2013

Food Security Bill reminiscent of license-permit raj: Dr.JP

Enlarging the discredited, ineffective, leakage-prone and corrupt public distribution system (PDS) in the name of food security is a great farce and tragedy, said Lok Satta Party national President Dr. Jayaprakash Narayan today.

Commenting on the Food Security Bill passed by the Lok Sabha on August 26, Dr. JP said it is nothing but a throwback to the era of license-permit-quota raj.

Dr. JP said it is no doubt true that three to five percent of Indian people are starving for want of food. Instead of focusing on them, the Government has chosen to enlarge the PDS to cover 67 percent of people in the country. What is paradoxical is that the Government move coincides with its claim to have brought down poverty levels significantly.

Dr. JP pointed out that in States like Andhra Pradesh the PDS covers 90 percent of people. More than 40 percent of food grains distributed through the PDS are sold in black market and recycled to the Food Corporation of India. The so-called subsidy is merely lining the pockets of corrupt officials and politicians and unscrupulous traders. Payment of Rs.3 lakh for allotment of a fair price shop in a city like Hyderabad and the huge market demand for a posting expose the magnitude of corruption in the civil supplies and vigilance wings of the Government.

Dr. JP also took exception to the accent on cereals distribution in the name of food security. Malnutrition in India is mostly protein malnutrition and not calorie malnutrition. Food is available in every corner of the country. The problem pertains to absence of purchasing power and not food availability. The answer to the problem lies in distribution of food stamps to the genuinely poor.

Dr. JP referred to the 80 million tons of food grain lying in Government granaries, most of it exposed to rain and shine and rodents and said India can easily earn 10 billion US dollars if it chooses to export surplus food grain and address the current account deficit problem to some extent. Instead, it chooses to sustain the corrupt and ineffective procurement and storage system. The Government can save another 10 billion US dollars if it imposes a modest duty on import of pulses and edible oil and uses the revenue to boost indigenous production. India is today the largest importer of pulses and edible oil in the world and will be an importer forever if it does not mend its policies.

Dr. JP said that poverty can be eradicated only when the poor are enabled to improve their purchasing power. It is possible only when they are provided quality education, skills and jobs. Such a policy calls for a lot of hard work and politics of conviction. The Government, however, opts for vote bank politics by conceiving schemes like food security for most of Indians.

Dr. JP in this context referred to countries like Bangladesh, Thailand and Vietnam occupying the space being vacated by China in low-end manufacturing. They are creating jobs for their people and emerging as huge exporters. Instead of focusing on creation of infrastructure and jobs, India’s rulers are betraying intellectual and moral bankruptcy by harking back to the license-permit raj in the name of food security.

The food security as conceived by the Government will merely deepen the agrarian crisis in India which is witnessing tens of thousands of farmers fleeing farms as agriculture has become unviable. As a direct consequence of the proposed food security, the Government will depress cereal prices and impoverish farmers further to ensure food grain supply to vast sections at hugely subsidized prices.

Dr. JP concluded by saying that the only mantra for eradicating poverty and promoting prosperity is ‘jobs, jobs and jobs’. Palliatives like ensuring food security will not do.

5 comments:

  1. Every sentence of this statement seems to be wrong.

    >> throwback to the era of license-permit-quota raj.

    PDS is already implemented by states. Center is merely offering to share a larger portion of the bill.

    >> the Government has chosen to enlarge the PDS to cover 67 percent of people in the country. ... claim to have brought down poverty levels significantly.

    Food security has nothing to do with poverty. How do we have Sodexo coupons? Why isn't there sales tax on essential food commodities consumed even by the super rich. Why is there standard deduction in your income tax? Besides, in states where PDS works, its available to everyone (Tamilnadu).

    >> ... in ... Andhra Pradesh the PDS covers 90 percent of people. More than 40 percent of food grains ... sold in black market

    PDS is implemented by state governments. How is Union responsible for the poor implementation by states? TN, Kerala, Chattisgarh implement it very well. Andhra is trying to streamline too. Its the only state that has a Directorate of Social Audits. PDS social audits conducted in Warangal district are an example to the whole country.

    >> took exception to the accent on cereals distribution in the name of food security.

    food security is about delivering staple food. the money saved by families this way can be used by them to buy protein food. TN provide eggs in mid-day meal scheme. Every state can try that and the center is willing to share the financial burden. Nothing prevents states from innovating.

    >> The answer to the problem lies in distribution of food stamps to the genuinely poor.

    How is food stamp any cheaper than food? at 3 rupees per kg, which private shop will give rice? does FSB stop any state govt from issuing food stamps?

    >> 80 million tons of food grain lying in Government granaries ... earn 10 billion US dollars ... export surplus food grain and address the current account deficit

    Supreme court says distribute rotting grains to poor. Is food security for all, a lesser goal than bridging CAD? FCI maintains granaries to feed Indians, not sell and earn US dollars. private companies can very well export.

    >> Government can save another 10 billion US dollars if it imposes a modest duty on import of pulses and edible oil

    there-by increasing the price of pulses further? that too when people are suffering food price inflation? is govt preventing farmers and private companies from producing pulses?

    >> poverty can be eradicated only when the poor are enabled to improve their purchasing power.

    so freeing up their money spent on food doesn't increase their purchasing power?

    >> It is possible only when they are provided quality education, skills and jobs.

    so much whining when govt wants to provide food. and isn't govt also providing free education to all indians? do you know any poor child who was turned away from a government school? As Amartya Sen argues, a malnurished work force is not productive.

    >> They are creating jobs for their people and emerging as huge exporters.

    Is job creation the work of govt or private enterprise?

    >> As a direct consequence of the proposed food security, the Government will depress cereal prices and impoverish farmers further

    States are already implementing PDS. FSB merely increases funding. When farmers are accepting free electricity, subsidized fertilizer, minimum support price, income tax exemption, why can't they support a govt program to feed poor people? Isn't farming an entrepreneurial activity with as much risk in any other business?

    ********

    I myself, am a libertarian, who supports abolishing PDS altogether and instead asking FCI to open food retail shops in every part of the country. That will be universal, leakage proof, provide competition in the food retail industry, and perhaps even revenue neutral since essential food items can be cross subsidized by selling more expensive food items at scale.

    -Balaji.

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    Replies
    1. hello Balaji...most of the people will accept JP sir's comments including myself..why because..food security..distributing free food is equal to food tickets for unemployed in USA.if we get food for free of cost..what is the need for getting a job..what is need to go out of house for work..they can just take rest..such schemes will make people lazy.they will wait for free food given by government just like beggers.the concept of food tickets is same as food security..so who will dare to invest in such countries stock market, who is distributing huge number of food tickets for people??this can lead to decrement of rupee value which leads to increase in the costs of every product..which leads to poverty of each and every individual of india.people who are able to afford their needs right now cannot afford any thing in the future..and even they had to wait for govt rice.

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  2. Mr. balaji,
    Please don't call yourself as a libertarian if you are supporting any government intervention in our lives. Period.

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  3. WHY ARE WE NOT STARTING A MOVEMENT TO ELIMINATE CORRUPTION ?

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  4. SIR ELANTI ALOCHANALU ENDHUKU VASTHAI POLITICIANS KI :
    pratutham kavaliicindhi nirudhyogani arikattadam adhimaneci meeru somaripothulu endhuku pancheyaru meeku madhyanam sayantram oka mudhapadestham dhaniki 1,25000 rupees avthudhi antaru Adabutho industries devalop cheyavachukadha

    ReplyDelete