Ramanisblog

Tag: Public Distribution System

  • Figures Expose Food Security Bill 2013

    Food Security Bill 2013.Reasons for States' objections.
    Food Security Bill 2013.Reasons for States’ objections.

    The Food Security Bill 2013, India , summary is,

    The Bill extends to the whole of India and “shall be deemed to have come into force on the 5th day of July 2013”. [NB: This is the date when the National Food Security Ordinance 2013 came into force.]

    2. Entitlements

    Priority households are entitled to 5 kgs of foodgrains per person per month, and Antyodaya households to 35 kgs per household per month. The combined coverage of Priority and Antyodaya households (called “eligible households”) shall extend “up to 75% of the rural population and up to 50% of the urban population”. The PDS issue prices are given in Schedule I: Rs 3/2/1 per kg for rice/wheat/millets. These may be revised after three years.

    Children’s Entitlements

    For children in the age group of 6 months to 6 years: an age-appropriate meal, free of charge, through the local anganwadi. For children aged 6-14 years, one free mid-day meal every day (except on school holidays) in all government and government-aided shools, up to Class VIII. For children below six months, “exclusive breastfeeding shall be promoted”. For children who suffer from malnutrition, meals will be provided to them free of charge “through the local anganwadi”.

    Entitlements of Pregnant and Lactating Women

    Every pregnant and lactating mother is entitled to a free meal at the local anganwadi(during pregnancy and six months after child birth) as well as maternity benefits of Rs 6,000, in instalments.

    [Notes: (1) “Meal” is defined as “hot cooked or pre-cooked and heated before its service meal or take home ration, as may be prescribed by the Central Government”. All “meals” have to meet nutritional norms specified in Schedule II. (2) The entitlements of women and children are to be delivered by state governments through schemes in accordance with guidelines to be prescribed by the Central Government.]

    3. Identification of Eligible Households

    The Bill does not specify criteria for the identification of households eligible for PDS entitlements. The Central Government is to determine the state-wise coverage of the PDS (proportion of the rural/urban population). Then numbers of eligible persons will be calculated from Census population figures. The identification of eligible households is left to state governments, subject to the scheme’s guidelines for Antyodaya, and subject to guidelines to be “specified” by the state government for Priority households. The identification of eligible households is to be completed within 365 days. The lists of eligible households are to be placed in the public domain and “displayed prominently”.

    4. Food Commissions

    The Bill provides for the creation of State Food Commissions. The main function of the State Commission is to monitor the implementation of the Act, give advice to the states governments and their agencies, and inquire into violations of entitlements. State Commissions also have to hear appeals against orders of the District Grievance Redressal Officer and prepare annual reports.

    5. Transparency and Grievance Redressal

    The Bill provides for a two-tier grievance redressal structure, involving the District Grievance Redressal Officer (DGRO) and State Food Commission. State governments must also put in place an internal grievance redressal mechanism which may include call centres, help lines, etc.”

    Some questions.

    1.Most of the States in India are distributing Grains to people under PDS scheme to Below Poverty Line (BPL)

    In some States the Grain is issued free of cost, maximum quantity under this is fixed;in some States,the price up to 20Kgs is Re One/kg.

    In the absence of any Identifying Mechanism for those to be eligible to avail this scheme.would there not be duplication of supplies to the same beneficiary?

    2.Production of Grain Estimate , 2013.

    As per the estimates, the total food grain production is likely to be 255.36 million tonnes.

    The food grain production was earlier estimated at 250.14 MT (as per II advance estimates released in February.)

    Production of rice is likely to be 104.22 million tonnes. Wheat production is likely to be 93.62 million tonnes.

    (http://www.commodityonline.com/fundamentals/india-total-food-grain-production-for-2012-13-likely-to-be-25536-mn-tons/769/)

    Demand:

    Wheat consumption (FSI) in MY 2013/14 is forecast to increase to 83.0 million tons on expected
    sufficient domestic production and continued higher supplies of government wheat stocks at subsidized
    prices to the consumers through the Public Distribution System (PDS) and local millers through Open
    Market Sales (OMS) program. …

     Rice consumption in
    MY 2013/14 is forecast to increase by three percent to 97 million tons on expected sufficient domestic
    supplies and higher sales of government rice through the PDS. However, continued inflationary
    domestic rice prices could affect rice consumption in MY 2013/14.

    So Under PDS Demand/Consumption is for

    Wheat   – 83 Million Tons.

    Rice       –97 million tons

    Production Estimate:

    Wheat –93.62 million tonnes.

    Rice     -104.22 million tonnes

    In Wheat, the production is less than the consumption(estimate)

    Mind you . this is only PDS distribution figures.

    When you go in for National Food security the quantity is bound to increase.

    In Rice, the Production is about 5 Million tons more than the projected demand and this gain is only the PDS distribution.

    How does the Government prose to meet the shortfall?

    By Imports?

    What about the additional cash outlay by Subsidies?

    Nice, weaken the Rupee further.

    In this exercise The Chief Minister of Tamil Nadu, Jayalalithaa has correctly pointed out the nonsense of the scheme stating that the Center is cutting down the Central Allocation to Tamil Nadu to the tune one lakh tons and the subsidy is also being reduced.

    Food security Bill 2013 Essential Features.
    Food security Bill 2013 Essential Features.

    The beneficiaries are yet to be identified, the mechanism is to be set!

    Fantastic scheme on paper, delivering on paper and placing the next Central Government in a fix.

    If Congress comes to power they will conveniently forget this as the did about Black Money!

    Source:

    http://www.tehelka.com/exclusive-summary-of-the-national-food-security-bill-2013/`

    http://gain.fas.usda.gov/Recent%20GAIN%20Publications/Grain%20and%20Feed%20Annual_New%20Delhi_India_2-15-2013.pdf

    Related Articles

    Sharad Pawar said, “My worry is not today or tomorrow, but when it (Food Security Bill) will be in full swing. Demand will grow. By next year, the Subsidy Bill will go up to Rs 1,25,000 crore.”   If you are among those who believe, as Sonia Gandhi and Amartya Sen do, that no price is too high to pay for solving the horrible malnutrition that India’s children suffer from then let me explain why you are wrong.  Every other Indian child will continue to be officially malnourished even after this Bill becomes law because it is the wrong solution to a truly shameful problem. Half of India’s children are malnourished not because they do not get enough food grain to eat but because they do not get the right kind of nourishment.

    http://www.niticentral.com/2013/09/01/sonias-fsb-an-expensive-delusion-127163.html

  • Subsidies to Oil Corporations and the People of India

    English: OECD Logo Deutsch: OECD Logo
    English: OECD Logo Deutsch: OECD Logo (Photo credit: Wikipedia)

    I was watching the programme of Vijay TV,Neeya ,Naana’ Talk Show on 15 July 2012.

    The topic was Price rise.

    It brought out the apathetic conditions of the Middle and lower-income groups in India.

    The topic touched on corporate subsidies.

    However much the apologists for Corporates could argue the fact is that the subsidies doled out to the Corporates has not met with the desired social benefits in terms of controlling the prices.

    The Economists quote growth rate of the Industry and the saving of Foreign Exchange.

    Even if we agree to this, has it reduced the burden of the individuals?

    No.

    I have collected, as a sample, the Dividend declared by IOC and the subsidies granted by the Government.

    Simple logic says that no one would declare Dividend from a losing Company.

    How is it that IOC is declaring profits and at the same time crying foul that it would be hurt badly if the Oil Prics are not increased?

    As a major Share holder the Government is earning the profit out of IOC.

    How can we say Oil Companies/Government is incurring loss on account of Oil Subsidy granted and to recoup it the Government is increasing th Oil Price?

    Notwithstanding the mumbo-jumbo of Economics, the fact remains people suffer.

    On the other hand a group is emerging,especially IT which fuels inflation.

    This trend is not good for the Society.

    http://economictimes.indiatimes.com/indian-oil-corporation-ltd/infocompanydividends/companyid-11924.cms

    Related.

    The word ‘subsidy’ gets the hackles of free market economists up. The government’s economic managers and advisors have consistently been in favour of eliminating – or at least reducing — subsidies.

    The present environment supports their argument. The economic slowdown has meant slower revenue growth and a larger than expected ‘fiscal deficit’ – the gap between the government’s income and expenditure – with pressure mounting to reign in the deficit. Numerous voices – from corporate chambers, financial media personalities, and even fund managers – have been calling on the government to reduce deficit by cutting down subsidies. With food inflation abating, the government strategy appears to be to utilise the period until March to build public acceptance of the elimination of subsidies and then make its moves after the state elections are out of the way.

    The subsidies that the government wishes to cut or eliminate fund diverse programmes, with the common theme being that they make available some item of mass consumption – foodgrains, fuel or fertilisers – at prices controlled by the government rather than left to market forces.

    The most elaborate subsidy is the food security programme with a Public Distribution System (PDS) that procures grain from farmers, maintains a buffer stock in storage, and makes the grain available around the year to 65 million households across the country through nearly half-a-million retail outlets. The oil programme has several components — providing kerosene (used mainly for lighting by poor families) through PDS outlets; distributing Liquefied Petroleum Gas (LPG) for cooking to 115 million customers; and finally making diesel – 75% of which is used for mass transport, both rail and road, for agricultural machinery and for emergency power generation – available at government set prices. The last programme pays fertiliser manufacturers and importers to sell fertilisers to farmers at government set prices.

    Government support for these programmes has the effect of lowering the expenditure of poor households. This assumes importance in the absence of a state-supported guarantee of minimum income levels. Social security – a fallback in case of unemployment, old age and incapacitation or illness – is non-existent for most Indians. A recent report (Divided We Stand: Why Inequality Keeps Rising) from the Organisation of Economic Co-operation and Development (OECD) finds India’s public social spending measured as a fraction of its GDP not only far lower than the developed countries, but also lower than China, Russia, Brazil, and South Africa, the ‘emerging economies’ with which it is often compared.

    Yet the government’s economic advisors choose to question the provision of subsidies.

    http://infochangeindia.org/governance/analysis/the-public-interest-in-subsidies-and-tax-exemptions.html

    Dividends Declared

    Announcement Date Effective Date Dividend Type Dividend (%) Remarks
    28/05/2012 Final 50%
    30/05/2011 15/09/2011 Final 95%
    28/05/2010 08/09/2010 Final 130%
    29/05/2009 02/09/2009 Final 75%
    28/05/2008 09/09/2008 Final 55% AGM
    28/05/2007 10/09/2007 Final 130%
    07/12/2006 26/12/2006 Interim 60%
    26/05/2006 07/09/2006 Final 125% AGM
    30/05/2005 08/09/2005 Final 100% AGM
    07/12/2004 29/12/2004 Interim 45%
    08/06/2004 23/08/2004 Final 160% AGM
    11/12/2003 01/01/2004 Interim 50%
    23/06/2003 18/09/2003 Final 160% AGM
    02/01/2003 03/02/2003 Interim 50%
    18/06/2002 12/09/2002 Final 110% AGM
    15/06/2001 Final 95% AGM
    05/08/2000 Final N.A.% Nil Final Dividend
    15/05/2000 Interim 40% 2nd Interim Dividend
    31/01/2000 Interim 35%
    02/06/1999 Final 130%
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