Friday, 30 September 2011

NAC may take U-turn on food security Bill

The National Advisory Council will meet on Friday again to discuss the National Food Security Bill but the basic tablet of principles could be substantially changed with the Sonia Gandhi-led group taking a U-turn away from its earlier demand for universalisation of the public distribution system.
The proposal supported by the Planning Commission, suggesting that the Tendulkar committee figures for those living below the poverty line be the cut off for providing foodgrains at Rs 3 per kg, could now get greater weightage.
This is seen as a reflection of the changed dynamics between the Congress president who chairs the NAC, the council's members and the government -- especially the PMO and the Planning Commission.
The favoured proposal also recommends that only 33% of the urban population be provided subsidized grains.
Earlier, a larger number of NAC members were in favour of a near universalisation option with 80% of rural population getting the subsidized grains.
But in the previous meeting, the Congress president had not accepted the idea of universalisation of PDS, pointing out instead that it would be difficult for the poor to comprehend why the government provided the same amenities to the rich as to the poor.
She had asked the NAC members working on the Bill to consult the government and come back with a clearer proposal along lines that provide differential services to different income segments.
The meeting on Friday is expected to see greater focus being given now to the proposal that allows for the rural population living above the Tendulkar poverty line -- or Above Poverty Line beneficiaries -- to get only 25 kg of foodgrain, that too at a higher rate.
Though this may not be the last of the turns the debate goes through as it moves through NAC and government circles, the step away from universalisation of the PDS scheme, if accepted, would radically reduce the number of beneficiaries of the proposed Act as well as pare down the government's annual subsidy bill by Rs 15,000-20,000 crore.
The Right To Food campaign has spoken out against the move away from universal PDS even though two of its key members -- Aruna Roy and Jean Dreze -- are also members of the NAC.
For the Congress party too, it would require political will to keep 67% of the urban population out of the social security net. The impact of this would be seen more in Tamil Nadu and Andhra Pradesh where PDS is already extensively servicing the urban population.
Most of the NAC members were earlier seen advocating a process where an artificial cut off line for identification of poor would not be imposed by the Centre and instead identification of beneficiary vulnerable and needy groups should be undertaken. But the proposal now would require such an imposed cut off which has always been opposed by the state governments.

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