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GS Paper: PDS, Buffer Stock & Food Security

  • How Punjab and Haryana remain key to National Food Security?

    Why in the News? 

    The recent drop in agricultural production due to El-Nino has highlighted once more the critical role Punjab and Haryana play in ensuring India’s food security.

    Role of Punjab and Haryana for the Food Security of India:

    • Punjab and Haryana are crucial in years with bad monsoons or climate shocks.
    • The average per hectare wheat and paddy yields in these states are 4.8 tonnes and 6.5 tonnes, respectively, significantly higher than the all-India averages of 3.5 tonnes and 4.1 tonnes.

    Wheat Production:    

    • Traditional procurement: Until the mid-2000s, Punjab and Haryana supplied over 90% of the wheat for India’s public distribution system (PDS) and other government programs.
    • Impact of the Green Revolution: The spread of high-yielding varieties to other states and the establishment of infrastructure for buying grain at minimum support prices (MSP) reduced Punjab and Haryana’s share to around 65% by the early 2010s.
      • In 2019-20 and 2020-21, total wheat procurement reached record levels (39-43.3 million tons), with Punjab and Haryana’s share falling to just over 50%. Madhya Pradesh became the top wheat procurer in 2019-20, surpassing Punjab.
    • Climate Shocks: The last three years have seen production setbacks due to climate shocks, including: An unseasonal temperature surge in March 2022. Heavy rain in March 2023 during the grain formation stage.

    Recent Climate Impact: 

    In 2023-24, unusually warm temperatures in November-December impacted wheat yields, especially in central India. The delayed winter, attributed to El Nino, led to premature flowering and shortened the vegetative growth phase.

    Regional Impact:

    • Madhya Pradesh’s wheat procurement dropped significantly from 12.8-12.9 million tons in 2019-20 and 2020-21 to about 4.6 million tons.
    • Uttar Pradesh and Rajasthan also saw significant declines from their 2020-21 highs.
    • Punjab and Haryana have been less affected due to longer winters and later sowing (early to mid-November).
    • Uttar Pradesh and Bihar reported good production due to near-normal March temperatures, but much of their produce was sold to private traders at prices above the MSP.

    Rice production in the states:

    • Traditional Procurement: Government rice procurement was historically concentrated in Punjab, Haryana, and the Godavari-Krishna and Kaveri delta regions of Andhra Pradesh (AP) and Tamil Nadu (TN).
    • Diversification: There has been a diversification in rice procurement, with new states like Telangana, Chhattisgarh, Odisha, and Uttar Pradesh (UP) becoming significant contributors to the Central pool.
    • Change in Procurement Shares: The combined share of Punjab and Haryana in total rice procurement decreased from 43-44% in the early 2000s to an average of 28.8% in the four years ending 2022-23. In the current crop year, this share has risen to around 32.9%, with some procurements still pending in Telangana, AP, and TN.

    Impact of Irrigation:

    • Farmers in Punjab and Haryana, with assured access to irrigation, did not suffer production losses from last year’s patchy monsoon attributed to El Niño.
    • In contrast, states like Telangana saw reduced rabi paddy planting and struggled with irrigation due to depleted groundwater levels.

    Policy implications

    • NFSA Entitlements: Under the NFSA, about 813.5 million people are entitled to receive 5 kg of wheat or rice per month through the Public Distribution System (PDS) at highly subsidized prices.
    • Current Government Policy: Since January 2023, the current government has been providing this grain to all NFSA beneficiaries free of cost.

    Way Forward:

    • Adoption of Climate-Resilient Varieties: Develop and promote high-yield, climate-resilient wheat varieties that are tolerant to heat, drought, and diseases.
    • Efficient Irrigation Systems: Invest in modern irrigation systems such as drip and sprinkler irrigation to ensure efficient water use.
    • Invest in Agricultural Research: Increase funding for agricultural research institutions to develop new wheat varieties and innovative farming techniques.

    Mains PYQ:

    Q Why did the Green Revolution in India virtually by-pass the eastern region despite fertile soil and good availability of water? (UPSC IAS/2014)

  • PREMIUM – Subsidies – Good or Bad for India?

    Why in the News? 

    Issues have been raised by the World Trade Organization (WTO) concerning Agricultural Subsidies in India. Major subsidies in India are on fertilizer, power, credit, output, seed, and export products.

    What is Subsidy?

    • The term subsidy refers to financial assistance in the form of discounts or monetary grants by the Central government to public entities or private institutions. 
    • The objective is to make the products offered by these institutions affordable for public consumption. 
    • The subsidized products are necessary for the larger public good and are a means of supporting the community’s welfare.

     

    Historical Background

    • Post-Independence Era (1947 onwards): The government introduced various subsidies to promote industrialization, agriculture, and social welfare, aiming to reduce poverty and achieve self-sufficiency in key sectors.
    • Green Revolution (1960s): During the 1960s and 1970s, Subsidies on fertilizers, seeds, and credit were provided to farmers to encourage the adoption of new agricultural technologies and boost food production.
    • Liberalization Reforms (1991):  While liberalization led to a reduction in some subsidies and a shift towards market-oriented policies, the government continued to provide support to sectors deemed crucial for social welfare and economic development.

    Types of Subsidies:

    • Food subsidy: The food subsidy’s main objective is to provide essential eatables to a large section of the population living below the poverty line in India. 
      • The major food items supplied to the BPL families (by PDS system) vary as per the region, it includes – Wheat, Rice, Sugar, Milk, Cooking oil, and more.
    • Education subsidy: The Central government extends the education subsidy to eligible students to pursue higher technical and professional education.
    • Export subsidy: To make exports attractive and lend support to the companies, the government offers export subsidies. 
    • Fertilizer subsidy: The fertilizer is provided at a fixed MRP that is below the actual price; the government pays the difference between the actual coat and the MRP.

    (Note: There are various types of subsidies but UPSC usually asks for Agriculture subsidies) 

    Subsidies in Agriculture:

    Direct Subsidies: 

    • Credit Subsidies: Subsidized credit programs offer farmers loans at lower interest rates or with relaxed repayment terms to finance agricultural activities, such as purchasing inputs, machinery, or land.
      • Ex-The Government of India provides interest subvention of 2% and Prompt Repayment Incentive of 3% to the farmers, thus making the credit available at a very subsidized rate of 4% per annum as per Kisan Credit Card.
    • Direct Income Transfers: Governments provide direct cash transfers or income support schemes to farmers to supplement their incomes, improve their financial stability, and alleviate rural poverty. Ex-PM Kisan Samman Nidhi Scheme under which support of Rs.6000/- per year 

    Indirect Subsidies 

    • Fertilizer Subsidies: Governments often provide subsidies on fertilizers to reduce the cost burden on farmers and promote fertilizer use, which enhances crop productivity. Ex- the Union Budget for the fiscal year 2024-25 (FY25) allocated ₹1.64 trillion for fertilizer subsidy.
    • Seed Subsidies: Subsidies on quality seeds help farmers access improved varieties that are disease-resistant, drought-tolerant or have higher yields. Ex- the government provides a subsidy of Rs. 1000/- per quintal or 50% of the cost.
    • Water Subsidies: Subsidized irrigation infrastructure and water supply schemes aim to improve water availability for agricultural purposes, especially in regions facing water scarcity. Ex- Pradhan Mantri Krishi Sinchai Yojana.
    • Minimum Support Prices (MSP): Governments guarantee a minimum price for certain crops to protect farmers from market price fluctuations and ensure stable income. Procurement agencies purchase crops from farmers at MSP, often for staples like wheat, rice, and pulses. Ex- the government of India sets the MSP twice a year for 24 commodities (23 crops + 1 sugarcane).
    • Crop Insurance Subsidies: Subsidies are offered on crop insurance premiums to encourage farmers to enroll in crop insurance schemes, which protect them against yield or revenue losses due to adverse weather, pests, or other risks. Ex- Pradhan Mantri Fasal Bima Yojana (PMFBY)
    • Subsidized Agricultural Machinery: Governments may subsidize the purchase of farm machinery, equipment, and tools to mechanize agricultural operations, increase efficiency, and reduce labor costs. Ex- Sub-mission On Agriculture Mechanization (SMAM scheme)

    Present issues raised by the WTO:

    • Market Distortion: The WTO contends that agricultural subsidies have the potential to disrupt global markets. For instance, subsidies like India’s Minimum Support Price (MSP) may result in the undervaluation of Indian agricultural goods on the international stage. 
    • Trade Barriers: Subsidies can create challenges for foreign producers without subsidies to compete effectively in markets where subsidized goods are sold.
    • Overproduction of certain crops: Subsidies can lead to overproduction of certain crops, which can further distort the market and lead to wastage.
    • Negative Environmental Impact: Overuse of fertilizers and water for irrigation, encouraged by subsidies, can lead to environmental degradation.
    • Inequity: The benefits of subsidies often go to larger farmers rather than small-scale farmers who need them the most.

    Limitations Faced by Indian Agriculture:

    • Subsidies on few crops: Subsidies like MSP, which are applicable for only a few crops, have led to cereal-centric agriculture with distorted cropping patterns, as farmers tend to grow only those crops for which they are given subsidies.
    • Benefiting only wealthy Farmers: As per the Economic Survey 2018, wealthy farmers benefited over small farmers from the farm subsidies. Thus the objective of giving subsidies is not fulfilled. This is the case frequently witnessed in Punjab and Haryana, where affluent farmers enjoy taxpayer money.
    • Fiscal deficit: Also, the subsidies lead to a substantial financial deficit and burden on the financial exchequer.
    • Cause of pollution: Subsidies for agriculture can foster the overloading of croplands, which leads to erosion and compaction of topsoil, pollution from synthetic fertilizers and pesticides, and release of greenhouse gases, among other adverse effects.

    Way Forward:

    • Diversification of Subsidies: Expand subsidy programs to cover a wider range of crops, including fruits, vegetables, pulses, and other diversified agricultural products, to promote crop diversification and mitigate the cereal-centric focus.
    • Targeted Subsidy Programs: Implement targeted subsidy schemes that prioritize support for small and marginalized farmers, ensuring that subsidies reach those who need them most and reducing the disproportionate benefit to wealthy farmers.
    • Price Stabilization Mechanisms: Develop price stabilization mechanisms beyond MSP, such as futures markets, crop insurance, and warehouse receipt systems, to mitigate price volatility and provide income security to farmers without distorting cropping patterns.

    Prelims PYQ

    In India, markets in agricultural products are regulated under the (UPSC IAS/2015)

    a) Essential Commodities Act, 1955

    b) Agricultural Produce Market Committee Act enacted by States

    c) Agricultural Produce (Grading and Marking) Act, 1937

    d) Food Products Order, 1956 and Meat and Food Products Order, 1973

    Mains PYQ 

    Q How do subsidies affect the cropping pattern, crop diversity and economy of farmers? What is the significance of crop insurance, minimum support price and food processing for small and marginal farmers? (UPSC IAS/2017) 

    Q What are the different types of agriculture subsidies given to farmers at the national and at state levels? Critically analyse the agricultural subsidy regime with reference to the distortions created by it (UPSC IAS/2013)

  • Food factor: On the latest retail inflation data

    Why in the news? 

    • India’s retail inflation remained virtually unchanged at 5.09% in February, even as food prices paid by consumers resurged from 8.3% in January to 8.66% in February.

    Context-

    • Most economists expect inflation to stay in the 5.1%-5.2% range in March as well, which would lift average inflation in the last quarter of this year over the 5% average projected by the RBI

    The primary reason behind the food inflation in February-

    • Vegetable Prices Surge: Vegetables experienced a significant price surge, with a seven-month high pace of 30.25% in February. This spike in vegetable prices contributed significantly to the overall food inflation.
    • Rise in Egg and Meat Prices: Prices of eggs and meat/fish also rose at a faster pace in February compared to January. Eggs witnessed a notable increase from 5.6% to 10.7%, while meat and fish prices rose from 1.2% to 5.2%.
    • Deceleration in Pulses and Spices Prices: While there was a slight deceleration in the inflation rate of pulses and spices compared to the previous year, these items still experienced steep price increases. Pulses inflation stood at 18.5%, and spices recorded a 13.5% increase.
    • Regional Disparities: Food inflation varied across different states, with some states experiencing inflation rates above the RBI’s upper tolerance threshold of 6%. States like Odisha, Telangana, Haryana, and Assam recorded high inflation rates, while others like Delhi, Madhya Pradesh, Uttarakhand, and West Bengal had relatively lower inflation rates.
    • Seasonal Factors and Supply Chain Issues: Seasonal factors, along with supply chain disruptions, could have contributed to the rise in food prices. Factors such as adverse weather conditions, transportation constraints, and supply-demand imbalances may have affected the availability and prices of food items in the market.

    To address inflation-related issues in the short term and long term, several measures can be considered:

    [A] Short-Term Measures:

    Supply-Side Interventions:

    • Increase the supply of essential commodities by releasing buffer stocks, if available.
    • Facilitate faster transportation of perishable goods through streamlined logistics and distribution channels.
    • Establish temporary market outlets to directly connect farmers with consumers, reducing intermediary costs and price hikes.

    Import Policies:

    • Relax import restrictions on essential food items to augment domestic supply and stabilize prices.
    • Expedite customs clearance procedures to ensure timely availability of imported goods in the market.

    Price Monitoring and Control:

    • Implement strict price monitoring mechanisms to prevent hoarding and profiteering.
    • Set up special task forces or committees to monitor price movements and take swift action against price manipulation.

    Demand Management:

    • Promote alternative dietary choices to alleviate pressure on high-priced items.
    • Encourage conservation and rational utilization of essential commodities through public awareness campaigns.

    [B] Long-Term Measures:

    Investment in Agriculture Infrastructure:

    • Enhance investment in agricultural infrastructure, including irrigation systems, cold storage facilities, and transportation networks, to improve productivity and reduce post-harvest losses.

    Crop Diversification and Technology Adoption:

    • Encourage farmers to diversify their crops to mitigate the impact of price volatility.
    • Promote the adoption of modern agricultural practices, including mechanization, precision farming, and biotechnology, to enhance crop yields and resilience to climate change.

    Market Reforms:

    • Implement market reforms to create a more efficient and transparent agricultural marketing system.
    • Facilitate the establishment of Farmer Producer Organizations (FPOs) and agricultural cooperatives to empower farmers and strengthen their bargaining power in the market.

    Food Processing and Value Addition:

    • Promote investment in food processing industries to add value to agricultural produce and reduce post-harvest losses.
    • Establish food processing clusters and agro-industrial parks to encourage entrepreneurship and create employment opportunities in rural areas.

    Risk Management and Insurance:

    • Introduce crop insurance schemes and risk management tools to protect farmers from income volatility caused by price fluctuations and natural disasters.
    • Provide training and technical assistance to farmers to improve their risk assessment and management capabilities.

    Sustainable Agriculture Practices:

    • Encourage the adoption of sustainable agriculture practices, including organic farming, agroforestry, and soil conservation, to ensure long-term environmental sustainability and food security.

    Conclusion-

    To mitigate food inflation, short-term measures such as supply-side interventions and price monitoring are essential, while long-term solutions like investment in agriculture infrastructure and market reforms are crucial for sustainable food security.

  • FCI Capital raised from Rs 10,000 cr to Rs 21,000 cr

    Introduction

    • The government has raised the authorized capital of the state-run Food Corporation of India (FCI) from ₹10,000 crore to ₹21,000 crore, marking a significant stride in bolstering its operational capabilities.
    • This initiative, announced by the Food Ministry, underscores the government’s commitment to strengthening FCI’s role in ensuring food security and safeguarding farmers’ interests.

    About Food Corporation of India (FCI)

    • Establishment and Objectives: Founded in 1965 under the Food Corporation Act, 1964, FCI serves as a statutory body under the Ministry of Consumer Affairs, Food and Public Distribution, Government of India.
    • Core Objectives: FCI is entrusted with the tasks of providing price support to farmers by
    1. Procuring grains at Minimum Support Prices (MSP),
    2. Supplying grains to Public Distribution System (PDS), and
    3. Maintaining strategic grain reserves.

    Initiatives to Enhance FCI’s Efficiency

    • Integrated IT Systems: FCI is implementing integrated IT solutions and adopting e-office initiatives to transition towards a paperless work environment and streamline operational functions effectively.
    • Infrastructure Development: FCI is investing in infrastructure projects such as cement road construction, roof maintenance, and weighbridge modernization to enhance operational efficiency.
    • Quality Assurance: Efforts are underway to procure lab equipment and develop software platforms for quality assessment, ensuring adherence to stringent quality standards.

    Significance of Increased Authorized Capital

    • Operational Strengthening: The augmentation of authorized capital aims to bolster FCI’s operational efficiency, reduce interest burdens, and positively impact government subsidies.
    • Modernization Imperative: In addition to financial infusion, the government emphasizes the modernization of storage facilities, transportation networks, and adoption of advanced technologies for enhanced performance.
    • Empowering Farmers: The government’s commitment to MSP-based procurement and investment in FCI’s operational capabilities reflects a collaborative approach towards empowering farmers, fortifying the agricultural sector, and ensuring nationwide food security.

    Relevance of FCI

    • Bedrock of National Food Security: FCI plays a pivotal role in implementing the National Food Security Act, ensuring procurement and distribution to far-flung areas for national food security.
    • Response to Crisis: During crises such as the Covid pandemic and migrant crises, FCI has effectively tackled challenges of hunger and starvation.
    • Fight against Malnutrition and Poverty: FCI’s role in the Public Distribution System (PDS) contributes to combating malnutrition and poverty, promoting inclusive growth.
    • Support to Farmers: By purchasing crops at MSP, FCI provides financial security to farmers, making agriculture remunerative.

    Challenges Faced by FCI

    • Limited Farmer Participation: Less than 10% of farmers can sell their produce to government agencies due to various factors such as lack of awareness or access to the MSP system, benefiting only large farmers in certain states like Punjab.
    • Storage Overload: FCI has stored double the grains than the prescribed buffer limits, leading to a shortage in the open market, inflation, and deterioration of grains due to limited storage capacity.
    • Leakages in Distribution: According to NSSO 2011, 40-60% of grains distributed through the Public Distribution System (PDS) are siphoned off, highlighting significant challenges in distribution efficiency and governance.

    Way Forward:

    Shanta Kumar Committee (2014) Recommendations

    • The Shanta Kumar Committee proposed a comprehensive set of recommendations aimed at reforming the Food Corporation of India (FCI) and enhancing its efficiency in managing food systems.
    • The committee proposes designating FCI as an “Agency for Innovation in Food Management Systems” to foster creativity and efficiency in managing food resources.

    [A] Procurement Stage

    • Outsourcing Procurement: Recommends outsourcing procurement activities in better-performing states like Punjab while centralizing procurement in states like Bihar, Assam, Bengal, and eastern Uttar Pradesh.
    • Cash Transfers to Farmers: Suggests exploring cash transfers to farmers as an alternative mechanism for procurement.
    • Buffer Stock Quotas: Advocates setting buffer stock quotas instead of open-ended procurement to optimize resource utilization.
    • Stringent Quality Checks: Emphasizes the need for stringent quality checks by third parties to ensure the quality of procured grains.

    [B] Storage Stage

    • Outsourcing Stocking Operations: Recommends outsourcing stocking operations to various agencies such as the Central Warehousing Corporation (CWC), State Warehousing Corporation (SWC), and the private sector under the Private Entrepreneur Guarantee (PEG) scheme.
    • Automatic Liquidation of Excess Stock: Proposes automatic liquidation of excess buffer stock in the open market to prevent overstocking and market distortions.
    • Maintaining Strategic Buffer Reserves: Suggests maintaining strategic buffer reserves to stabilize markets and address emergencies effectively.

    [C] Distribution Stage

    • Expanding Coverage under NFSA: Recommends expanding coverage under the National Food Security Act 2013 to encompass 40% of the population, ensuring wider access to subsidized food grains.
    • End-to-End Computerization: Advocates for end-to-end computerization of the distribution system to enhance transparency, efficiency, and accountability.
    • Online Tracking: Proposes online tracking of the entire system from procurement to retail distribution to facilitate real-time monitoring and management.

    [D] Transportation Improvements

    • Integration of Road and Rail Transport: Suggests integrating road transport along with rail to optimize transportation networks and reduce dependency on rail.
    • Containerization: Recommends using containers instead of gunny bags for efficient and hygienic transportation of food grains.
    • Utilization of Inland Waterways: Advocates utilizing inland waterways for transporting food grains, leveraging cost-effective and eco-friendly transportation modes.
    • Automation in Loading and Unloading: Proposes automation in loading and unloading processes to enhance efficiency and minimize manual labor.

    [E] Operational Overhaul

    • Doing Away with FIFO Principle: Suggests doing away with the FIFO (first in, first out) principle to release hygienic food grains on time and prevent wastage.
    • Targeting Chronically Starved Areas: Recommends implementing a pre-positioning shipment policy to store food grains nearer to chronically starved areas, ensuring timely access to essential supplies during emergencies.
    • Ensuring Last-Mile Connectivity: Advocates leveraging a network of Self-Help Groups (SHGs) and Farmer Producer Organizations (FPOs) to ensure last-mile connectivity and efficient distribution of food grains.

  • Cash Transfers vs Foodgrain Distribution

    Central idea

    • Three years ago, financial constraints prevented the Centre and states from providing cash transfers to vulnerable households during pandemic lockdowns. However, there was an abundance of wheat and rice in FCI’s warehouses, allowing distribution to 813.5 million people. However, the current scenario has reversed, with governments having funds but limited grain stocks, raising concerns for future provisions.

    Grain Distribution and Export Scenario

    Grain Distribution:

    • During the pandemic-enforced lockdowns the government distributed 10 kg of grain per month practically free to 813.5 million people from April 2020 to December 2022.
    • This distribution was made possible through the public distribution system (PDS) and aimed to support poor and vulnerable households suffering from job and income losses.

    Offtake of Grains:

    • 2020-21 (April-March): The offtake of wheat and rice totalled 92.9 million tonnes, surpassing the annual average of 62.5 million tonnes during the first seven years after the National Food Security Act (NFSA) implementation.
    • 2021-22: The offtake further increased to 105.6 million tonnes.
    • 2022-23: The offtake remained high at 92.7 million tonnes.

    Grain Exports:

    • Rice: In 2021-22, India exported 21.2 million tonnes of rice, valued at $9.66 billion. In 2022-23, rice exports reached 22.3 million tonnes, valued at $11.14 billion.
    • Wheat: Wheat exports accounted for 7.2 million tonnes ($2.12 billion) in 2021-22 and 4.7 million tonnes ($1.52 billion) in 2022-23

    Karnataka Case: Shift from Grain to Cash Transfers

    • Change in Financial Situation: As economic activities resumed, the financial situation improved for both the Centre and the states. Gross GST revenues grew, indicating increased financial resources available to the governments.
    • Reduction in Grain Quota: From January 2023, the monthly grain quota under the National Food Security Act (NFSA) was reduced from 10 kg to 5 kg per person.
    • Additional grain demand: The government in Karnataka sought additional grain from the FCI to fulfill its election promise of providing 10 kg of free rice per month to all members of below-poverty-line (BPL) households.
    • Centre’s Refusal: The Centre did not allow the state government to distribute the extra rice beyond the 5 kg provided under the National Food Security Act (NFSA)
    • Resort to Cash Transfers: As a result the Karnataka government started giving cash transfers instead. They started transferring Rs 170 to the bank accounts of the BPL family heads in lieu of the extra 5 kg of rice

    Implications of cash transfers 

    • Inflationary Pressures:
    • When households receive cash instead of free grain, they have the flexibility to use the money for various purposes, including purchasing rice or other goods.
    • Increased demand for rice in the market can lead to higher prices, potentially contributing to inflationary pressures.
    • Deflationary Impact of Free Grain Distribution:
    • When surplus grains are distributed without a monetary transaction, it can help stabilize or reduce the prices of grains in the market.
    • This can mitigate inflationary pressures and ensure affordable access to essential food items for vulnerable populations.
    • Budgetary Considerations:
    • This allocation needs to be carefully managed to ensure that it aligns with overall fiscal goals and priorities.
    • The availability of adequate financial resources for cash transfers can be a determining factor in choosing between cash transfers and free grain distribution.
    • Flexibility for Beneficiaries:
    • Instead of receiving a predetermined amount of grain, households can decide how to allocate the cash according to their priorities.
    • This flexibility allows households to address their unique requirements beyond food, such as healthcare, education, or other essential expenses.
    • Market Dynamics:
    • Cash transfers can stimulate economic activity by injecting money into local markets. This can have positive multiplier effects, benefiting various sectors and local businesses.
    • On the other hand, free grain distribution may limit the market demand for grains, potentially affecting the livelihoods of farmers and traders.

    Depleted grain stocks and uncertain monsoon

    • Depleted Grain Stocks:
    • The total stocks of wheat and rice in the Central pool today stands at a five-year-low.
    • While these stocks are still above the normative minimum required, there are concerns about the monsoon and its impact on this year’s rice crop, which may affect procurement and future stocks.
    • Monsoon Impact on Production:
    • The poorly distributed rain has resulted in lower-than-usual rice cultivation, with farmers having planted only 123.18 lakh hectares out of the normal total of 399.45 lakh hectares under rice during the monsoon season. Additionally, the cumulative area sown is 6.1% lower than the previous year.
    • Insufficient rainfall in the monsoon’s second half can impact not only the kharif rice but also the upcoming rabi wheat crop.

    The Export conundrum

    • Record Export Quantities: Despite the imposition of restrictions on grain exports, India witnessed record-breaking exports of rice, wheat, and other cereals. Specifically, total exports amounted to 32.3 million tonnes in 2021-22 and 30.7 million tonnes in 2022-23, valued at $12.87 billion and $13.86 billion, respectively.
    • Inflationary Pressures:  The rising demand for rice, coupled with reduced domestic availability due to exports, can lead to higher prices for consumers within the country.
    • Limited Import Capability for Rice: As India is the world’s largest rice exporter, importing rice in case of domestic production shortfalls becomes challenging. Unlike wheat, which can be imported due to ample global supplies, rice imports are restricted.
    • Price Volatility and Potential Export Restrictions: The rising rice prices globally, indicating potential price volatility. Given concerns over depleted grain stocks and uncertainties related to the monsoon, the government is considering additional export restrictions.

    Way forward: A balanced approach

    • Targeted Cash Transfers: Implement focused cash transfer programs to support the most vulnerable households affected by economic hardships.
    • Optimal Grain Procurement: Strengthen grain procurement mechanisms to ensure an adequate supply of grains for the Public Distribution System (PDS) and strategic reserves.
    • Strategic Stock Management: Develop effective strategies to balance grain distribution for immediate consumption while maintaining sufficient reserves for emergencies.
    • Diversify Food Sources: Explore diverse food options, such as millets, pulses, and vegetables, to reduce reliance on a single crop and enhance food and nutritional diversity.
    • Enhance Food System Resilience: Improve supply chain efficiency, reduce food waste, and enhance coordination among stakeholders for a resilient food system.
    • Continuous Monitoring and Evaluation: Establish robust monitoring and evaluation systems to track the effectiveness of cash transfer programs, grain procurement strategies, and food security initiatives.

    Conclusion

    • The current state of depleted grain stocks, coupled with the uncertainties surrounding monsoon performance and global market dynamics, presents a significant challenge for the government. Balancing the need for cash transfers to alleviate the plight of vulnerable households while ensuring adequate grain reserves to sustain the country’s food security is a delicate task.

  • Leveraging PDS to Improve Nutrition Security

    PDS

    Central Idea

    • The Department of Food and Public Distribution (DoF&PD), in particular the Food Corporation of India (FCI), must have heaved a sigh of relief that the procurement of wheat so far has crossed 20 million tonnes (MT), a notch higher than last year. Three states Punjab, Haryana and Madhya Pradesh have contributed more than 98 per cent to the central pool.

    Wheat production estimates

    • The Ministry of Agriculture and Farmers’ Welfare (MoA&FW) had earlier estimated the wheat production for this year to be 112 MT. However, the impact of unseasonal rains on wheat production has made the revised estimate uncertain.
    • Punjab: Punjab, one of the largest contributors to wheat procurement, is also in the process of estimating losses due to rough weather just before the harvest time. Despite the unseasonal rains, interactions with Punjab Agriculture University (PAU), market functionaries and farmers suggest that the production of wheat this year is higher than last year.
    • Uttar Pradesh: Uttar Pradesh produces almost double the amount of wheat (about 35 MT) than Punjab (about 18 MT). UP is estimated to procure 3.5 MT of wheat, but so far it has procured a meagre 0.12 MT. Unless it brings a surprise in May and June, the overall wheat procurement may stop well short of even 30 MT.

    Facts for prelims

    The benefits of Mulching of paddy straw

    • Increases organic carbon in the soil: Mulching of paddy straw increases the organic carbon content of the soil. It helps in retaining moisture in the soil and improves soil health.
    • Helps in reducing weed growth: Mulching acts as a magic as it helps in reducing the weed growth, conserves soil moisture, and provides essential nutrients to the soil.
    • Increases crop productivity: It helps in improving the fertility of the soil and in turn increases the productivity of the crops.
    • Reduces soil erosion: Mulching of paddy straw protects the soil from wind and water erosion.
    • Decreases the use of fertilizers: It helps in reducing the use of fertilizers as the organic matter from the mulch provides essential nutrients to the soil.
    • Promotes sustainable agriculture: Mulching promotes sustainable agriculture practices as it is an eco-friendly and cost-effective way of managing agricultural waste.

    PDS

    Challenges for providing nutritious food through PDS

    • Infrastructure and supply chain: There is a lack of proper infrastructure and supply chain to transport and store nutritious food items such as millets, pulses, and oilseeds. This leads to spoilage, wastage, and ultimately affects the quality of food provided through PDS.
    • Cost: Providing nutritious food items through PDS may increase the cost of the program, which can be a challenge for the government to sustain in the long run.
    • Awareness and demand: There is a lack of awareness among the general public about the benefits of nutritious food items and the need to include them in their diet. Also, there may not be enough demand for these items, leading to poor offtake and wastage.
    • Operational challenges: There are several operational challenges such as sourcing, storage, and distribution of nutritious food items, which need to be addressed for an effective PDS program.
    • Political interference: There may be political interference in the selection of food items to be included in PDS, leading to a focus on populist measures rather than on nutritious food items. This can undermine the effectiveness of the program.

    agriculture

    Nutrition security through PDS and a help to climate resilient agriculture

    • Introducing more nutritious food: The introduction of more nutritious food, such as millets, pulses, and oilseeds, in PDS can help achieve the twin objectives of nutrition and climate resilience.
    • Encouraging climate-resilient food: Encouraging the production of climate-resilient food crops like millets, pulses, oilseeds, etc., can help create a steady flow of nutritious food.
    • Upgrading fair price shops to Nutritious Food Hubs: At least 10% of fair price shops can be upgraded and declared as Nutritious Food Hubs (NFHs). These NFHs can have fortified, including bio-fortified, rice and wheat, millets, pulses, oilseeds (especially soyabean products with 40% protein), fortified milk and edible oils, eggs, etc.
    • Electronic vouchers for targeted beneficiaries: Consumers of PDS list may be given electronic vouchers (like an e-food coupon in a food court) that can be charged by the government three or four times a year.
    • Government assistance for upgrading NFHs: The NFHs can be upgraded with government assistance, creating demand for more diversified and nutritious food from the masses.
    • Capping the procurement of rice: The procurement of rice would have to be capped, starting with districts where the water table has been depleting alarmingly.
    • For example, Sangrur in Punjab has witnessed a fall of groundwater level by more than 25 meters during 2000-2019. Farmers of such districts could be incentivized to grow millets, pulses, oilseeds, etc., that are climate smart, use much less water and fertilizers, thus saving power and fertilizer subsidies.
    • Giving a special package for carbon credits: The Centre and the states need to join hands to give a special package for carbon credits for growing such crops. Farmers can be rewarded about Rs 10,000/acre (to be shared equally by the Centre and the state), as these crops would save that much fertilizer subsidy of the Centre and power subsidy of the state.

    Conclusion

    • The Department of Food and Public Distribution’s Chintan Shivir on leveraging PDS to offer more nutritious food is a great vision, but there are several operational challenges to provide a steady flow of these foods. Upgrading at least 10% of the fair price shops as Nutritious Food Hubs could create a demand for more diversified and nutritious food from the masses. However, capping the procurement of rice and incentivizing farmers to grow millets, pulses, and oilseeds that are climate-smart and use less water and fertilizers is necessary.

    Mains Question

    Q. How PDS can be leveraged to provided nutritious food and also help make Indian agriculture more climate resilient? Discuss along with the challenges

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    Also read:

    Food Security and Energy Crisis In The South Asian neighbourhood

     

  • India-UAE Food Security Partnership Stands to Benefit From Multiple Points of Convergence

    Food Security

    Central Idea

    • The UAE, heavily dependent on food imports, has set the goal of achieving food access and supply chain crisis readiness. India is a key partner in the UAE’s efforts to strengthen food security, given India’s status as the world’s second-largest food producer. The India-UAE food security partnership stands to benefit from multiple points of convergence.

    India’s Capabilities in the Global Agri-Export Market

    • Global agri-export powerhouse: India has become a global agri-export powerhouse thanks to its vast arable land, favourable climate, and growing food production and processing sector
    • India’s role in global food security: India has demonstrated its evolving role in advancing regional and global food security by serving as a humanitarian provider of food to developing countries
    • Global food marketplace: India has invested in massive food parks and placed its food sector to benefit from bilateral trade agreements, reflecting a strong and sustained intent to make the most of its agri-capabilities in the global food marketplace

    India’s Domestic Food Security Measures

    • World’s largest food subsidy programme: India runs the world’s largest food subsidy programme, the Public Distribution System, providing nearly 800 million citizens with subsidised grains for daily, affordable meals
    • POSHAN Abhiyaan: India’s Prime Minister’s Overarching Scheme for Holistic Nutrition (POSHAN) Abhiyaan is the world’s largest nutrition programme for children and women
    • 3 C’s for instance: India promotes the consumption and farming of millets as part of its G-20 presidency, demonstrating its resilience focus to address the three Cs of Covid, Conflict, and Climate issues pernicious to food security in India and across the globe

    Facts for prelims: Food security measures

    Scheme Description Target Beneficiaries
    Public Distribution System (PDS) World’s largest food subsidy program providing subsidized grains to nearly 800 million citizens BPL (Below Poverty Line) and APL (Above Poverty Line) families
    National Food Security Act (NFSA) Provides legal entitlement to subsidized food grains to two-thirds of India’s population Priority households and Antyodaya Anna Yojana (AAY) households
    Mid-Day Meal Scheme (MDMS) Provides cooked meals to children in primary and upper primary schools Children in primary and upper primary schools
    Integrated Child Development Services (ICDS) Scheme Provides supplementary nutrition to children under six years of age, pregnant women, and lactating mothers Children under six years of age, pregnant women, and lactating mothers
    Annapurna Scheme Provides 10 kg of food grains per month free of cost to senior citizens who are not covered under the NFSA or PDS Senior citizens who are not covered under the NFSA or PDS
    Prime Minister’s Overarching Scheme for Holistic Nutrition (POSHAN) Abhiyaan World’s largest nutrition program for children and women Children under six years of age, pregnant women, and lactating mothers
    Pradhan Mantri Garib Kalyan Anna Yojana (PMGKAY) Provides free food grains to around 80 crore beneficiaries for a period of 8 months to mitigate the impact of COVID-19 Migrant workers, urban and rural poor, and other vulnerable groups
    Antyodaya Anna Yojana (AAY) Provides highly subsidized food grains to the poorest of the poor families identified by the government Poorest of the poor families identified by the government

    Food Security

    The India-UAE Food Security Partnership

    • UAE’s Commitment to Food Security: The UAE is focusing on the twin objectives of food access and readiness to confront supply chain crises
    • Food corridor: The food corridor could potentially commence a route for foods made and processed in India, beginning their outbound journey on the Indian coast of the Arabian Sea, passing through the UAE, and towards major international markets
    • Agri-trade for India: The corridor stands to emerge as a world-class template of successful agri-trade for India, while also unlocking greater productivity, efficiency, and growth for its millions of workers and employees
    • Boost to food processing sector: The UAE’s private sector projects spanning its agricultural and food processing sector will generate lakhs of non-farm agri-jobs while enabling farmers to discover better prices for their products.
    • Diversified pathways to the global marketplace: Bolstered by the UAE’s infrastructural capabilities, India’s agricultural products will have more resilient and diversified pathways to the global marketplace

    Food Security

    Facts for prelims

    Millet production and food security

    • Largest producer: India is the largest producer of millet in the world with a share of 41% in 2020, as per FAO. Nine types are grown as kharif crops in over 20 States in the country.
    • Major millets include: finger millet (ragi or mandua), pearl millet (bajra) and sorghum (jowar) and minor millets include foxtail millet (kangani or kakun), barnyard millet (sawa or sanwa, jhangora), little millet (kutki), kodo millet (kodon), proso millet (cheena) and browntop millet.
    • Leading producers: Rajasthan, Karnataka, Maharashtra and Andhra Pradesh are leading producers.
    • India is also among the top five exporters: India exported millets worth $64.28 million in 2021-22 and $59.75 million in 2020-21, according to the Agricultural and Processed Food Products Export Development Authority.

    In depth: The Benefits of India-UAE food security partnership for India and the UAE

    For India

    • Investment in Food Parks: During the I2U2 summit in July 2020, the UAE committed $2 billion in investment towards constructing food parks in India. This investment will generate lakhs of non-farm agri-jobs, while enabling farmers to discover better prices for their products.
    • Access to Global Markets: The food security corridor established on the sidelines of the Comprehensive Economic Partnership Agreement (CEPA) with logistics partner DP World takes forward India’s envisioned presence on the global food value chain, beyond the UAE. The corridor has the potential to establish a route for foods made and processed in India, beginning their outbound journey on the Indian coast of the Arabian Sea, passing through the UAE, and towards major international markets.
    • Direct Access to UAE’s Food Ecosystem: The Dubai Multi Commodities Centre, the UAE’s largest free trade zone, launched Agriota, an agri-trading and commodity platform to link Indian farmers to food companies in the UAE. This platform will give millions of Indian farmers the opportunity to directly reach out to the entirety of the UAE’s food ecosystem (processing companies, traders, wholesalers) and stock their products in Emirati stores.
    • Infrastructure Development: Several UAE-based companies have expressed interest in constructing a supporting logistics and infrastructure pipeline to accelerate trade and reinforce the food corridor. A consortium of UAE-based entities are investing up to $7 billion in mega food parks, contract farming, and the sourcing of agro-commodities in India. This initiative will include mega food parks, logistics and warehouse hubs, and fruits and vegetable hubs, which will bolster India’s agricultural products’ resilient and diversified pathways to the global marketplace.

    For UAE

    • Diversification of food reserves: UAE heavily relies on food imports to feed its population. The partnership with India will help UAE diversify its food reserves and reduce its dependence on a few countries for its food security.
    • Strategic location: UAE’s strategic location between Asia and Europe can be leveraged to serve as India’s food export gateway to West Asia and Africa region, and beyond. This could enhance the UAE’s position as a hub for food trade in the region.
    • Investment opportunities: The partnership could open up investment opportunities for UAE-based companies to invest in India’s food and agriculture sector, including mega food parks, contract farming, and sourcing of agro-commodities.
    • Better access to Indian products: The partnership could give UAE better access to India’s diversified agri-produce, enabling them to benefit from India’s large and growing food production and processing sector.
    • Infrastructural capabilities: The UAE’s infrastructural capabilities could strengthen India’s agricultural products’ pathways to the global marketplace, providing more resilient and diversified routes to the global food value chain.

    Value addition box

    India’s efforts to promote millet:

    • The Union government promoted millets under the Initiative for Nutritional Security through Intensive Millets Promotion (INSIMP), as a sub-scheme of Rashtriya Krishi Vikas Yojana (RKVY) between 2011 and 2014.
    • In the following years, NITI Aayog worked on a framework to introduce millets under the public distribution system for nutritional support.
    • The government declared 2018 as the ‘national year of millets’ to trigger an increase in demand.
    • The programme under INSIMP was merged with the National Food Security Mission (NFSM) as NFSM-Coarse Cereals and implemented in 14 States. Several States led separate missions to promote millets.
    • In 2021, the Centre approved the Pradhan Mantri Poshan Shakti Nirman (PM POSHAN) and advised State governments to include millets in the midday meal menu to enhance the nutritional outcome.
    • India’s efforts to promote the consumption and production of millet got a boost when the UNGA accepted the country’s proposal and dedicated 2023 to spreading awareness about these grains. It is instrumental for PM’s vision to make IYM 2023 a people’s movement and positioning India as the ‘global hub for millets’.

    Conclusion

    • The India-UAE food security partnership stands to benefit both countries, and the collaboration between the two nations can offer solutions to address food security issues in the Global South. With the UAE’s infrastructural capabilities and India’s agricultural capabilities, the partnership can create diversified pathways to the global marketplace, generate non-farm agri-jobs, and enable farmers to receive better prices for their products.

    Mains Question

    Q. Explain the India-UAE food security partnership and enumerate the mutual benefit of the food security partnership.

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  • SMART-PDS: The Transformative Potential Beyond Food Security

    Central Idea

    • India’s National Food Security Act, 2013 (NFSA) governs the largest beneficiary-centric program, the Targeted Public Distribution System (TPDS), providing food security to 81.35 crore persons every month. The government is now implementing the Scheme for Modernisation and Reforms through Technology in Public Distribution System (SMART-PDS). This initiative generates vast amounts of data, which can be leveraged to improve the delivery of other central schemes and welfare programs.

    Existing challenges for TPDS

    • Leakage and diversion of food grains: One of the most pressing issues in the TPDS is the leakage and diversion of food grains meant for beneficiaries, leading to corruption and losses in the system. This problem is primarily due to poor monitoring, lack of transparency, and weak enforcement mechanisms.
    • Inaccurate targeting of beneficiaries: The TPDS often suffers from errors in identifying eligible beneficiaries, resulting in the exclusion of deserving households and the inclusion of ineligible ones. This misidentification can be attributed to outdated data, lack of verification mechanisms, and manipulation of records.
    • Inefficient supply chain management: TPDS faces logistical challenges in transporting, storing, and distributing food grains across the vast country. Inadequate storage facilities, poor transportation infrastructure, and delays in procurement and distribution contribute to wastage and inefficiencies in the system.
    • Limited portability of benefits: Until recently, the TPDS lacked portability, which meant that beneficiaries could only access their food grains from designated Fair Price Shops (FPS) in their home states. This restriction made it difficult for migrant workers and their families to access their entitled benefits.
    • Lack of transparency and accountability: Corruption, fraud, and manipulation of records are pervasive issues in the TPDS, partly due to the lack of transparency and accountability in the system. The absence of real-time monitoring and the reliance on manual record-keeping exacerbate these problems.
    • Technological constraints: Many states and union territories in India face technological constraints in implementing IT-based solutions for TPDS operations. Limited access to IT hardware, software, and technical manpower can hinder the adoption of technology-driven reforms, such as electronic Point of Sale (ePoS) devices and biometric authentication systems

    What is SMART-PDS?

    • SMART-PDS (Scheme for Modernisation and Reforms through Technology in Public Distribution System) is an initiative by the Indian government aimed at improving the efficiency, transparency, and accountability of the country’s Targeted Public Distribution System (TPDS).

    The key objectives of the SMART-PDS initiative

    • Preventing leakage of food grains: By leveraging technology, SMART-PDS aims to reduce diversion and pilferage of food grains, ensuring that the intended beneficiaries receive their due share of food subsidies.
    • Enhancing efficiency in the distribution chain: The initiative focuses on streamlining the supply chain from procurement to distribution by incorporating technology-driven solutions, such as electronic Point of Sale (ePoS) devices, real-time monitoring, and tracking systems.
    • Data-driven decision-making: Data Analytics on the TPDS ecosystem generates critical information about beneficiaries, food security needs, and migration patterns, addressing the long-standing challenge of credible and dynamic data for efficient delivery of central welfare schemes to vulnerable sections of society.
    • Convergence and integration with AI: The national leadership’s push for trans-ministerial convergence and AI integration can be a game-changer for both people and governments, bringing accountability across all programs.
    • Technology-led PDS reforms: The Centre plans to use data analytics, BI platforms, and ICT tools to standardize PDS operations through technology integration with FCI, CWC, transport supply chain, Ministry of Education, Women and Child Development, and UIDAI. This is expected to overcome state-level technological limitations in PDS operations and institutionalize an integrated central system for all PDS-related operations across states/UTs.
    • Aadhaar authentication and ePoS devices: With 100% digitization of ration cards and the installation of ePoS devices, nearly 93% of the total monthly allocated foodgrains are distributed through Aadhaar authentication mode.

    Integrated Management of Public Distribution System (IM-PDS)

    • The government has launched the IM-PDS to implement One Nation One Ration Card (ONORC), create a national-level data repository, and integrate data infrastructure/systems across ration card management, foodgrain supply chain, and FPS automation.
    • The ONORC plan has recorded over 100 crore portability transactions since its inception in 2019.

    SMART-PDS benefits beyond ration distribution

    • The data generated by SMART-PDS has become a tool for central ministries and state governments, benefiting initiatives like e-Shram Portal, Ayushman Bharat, and PM-SVANidhi Yojana.
    • The Ministry of Agriculture and Farmers’ Welfare (MoAFW) plans to use ONORC/ration card data to map beneficiaries, and seamless tracking of nutrition from ICDS centers to PM Poshan will become a reality with Aadhaar numbers for the newly born.

    Conclusion

    • The transformative potential of SMART-PDS goes beyond food security, enabling data-driven decision-making, convergence, and integration with AI for improved delivery of central schemes and welfare programs across India.

    Mains Question

    Q. Despite several efforts taken by the government the Targeted Public Distribution System still faces various challenges. In this backdrop discuss the new initiative of SMART-PDS and its key features

  • Combating micronutrient malnutrition through food fortification

    malnutrition

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    Context

    • When it comes to nutrition, or more specifically micronutrient malnutrition, there is an urgent need to address the maladies that poor nutrition can inflict on the masses, especially given the diverse populations in India.

    What is malnutrition?

    • Malnutrition refers to deficiencies, excesses or imbalances in a person’s intake of energy and/or nutrients.
    • The term malnutrition covers 2 broad groups of conditions.
    • One is ‘undernutrition’ which includes stunting (low height for age), wasting (low weight for height), underweight (low weight for age) and micronutrient deficiencies or insufficiencies (a lack of important vitamins and minerals).
    • The other is overweight, obesity and diet-related non-communicable diseases (such as heart disease, stroke, diabetes, and cancer).

    What are micronutrients and why they are so important?

    • Micronutrients are vitamins and minerals needed by the body in very small amounts.
    • They perform a range of functions, including enabling the body to produce enzymes, hormones and other substances needed for normal growth and development.
    • However, their impact on a body’s health is critical, and deficiency in any of them can cause severe and even life-threatening conditions. This can lead to reduced educational outcomes, reduced work productivity and increased risk from other diseases
    • Deficiencies in iron, vitamin A and iodine are the most common around the world, particularly in children and pregnant women.
    • Low- and middle-income counties bear the disproportionate burden of micronutrient deficiencies.
    • Many of these deficiencies are preventable through food fortification and supplementation, where needed.

    malnutrition

    The worrying status of malnutrition in India

    • According to National family Health survey (NFHS): As in NFHS-5 data, every second Indian woman is anaemic, every third child is stunted and malnourished, and every fifth child is wasted.
    • According to an FAO Food Security Report for 2021: India ranks 101 out of 116 countries in the Global Hunger Index 2021, with a 15.3% undernourished population, the highest proportion of stunted children (30%), and wasted children (17.3%).
    • Higher rate of stunting: The picture the Global Nutrition Report 2021 paints is cause for concern, noting that stunting among children in India is significantly higher than the Asian average of 21.8%.

    How the countries are tackling malnutrition?

    • Since the 1920s, developed countries and high-income countries have successfully tackled the issue of malnutrition through food fortification.
    • Of late, the low-and middle-income countries, such as India, have pursued food fortification as one of the strategies to tackle micronutrient malnutrition.
    • The health benefits accruing from food fortification have made 80 countries to frame laws for the fortification of cereal flour, and 130 countries with iodised salt, where 13 countries have mandated rice fortification.

    malnutrition

    What is food fortification?

    • Food fortification is the process of adding nutrients to food.
    • For instance, rice and wheat are fortified with iron, folic acid and vitamin B12, and salt fortified with iron and iodine. Iodised salt has been in use for the past few decades.

    malnutrition

    How India is tackling malnutrition and anemia?

    • Fortified rice though PDS: Pilot projects on the distribution of fortified rice have been taken up in select States, including Maharashtra (Gadchiroli district) as part of a targeted Public Distribution programme for the masses.
    • Scaling up the distribution through various food security schemes: The programme has been a success in terms of preventing cases of anaemia from 58.9% to 29.5%, within a span of two years, prompting the central government to declare the scaling up of the distribution of fortified rice, the major staple diet of 65% of the population, through the existing platform of social safety nets such as the PDS, ICDS and PM-POSHAN.
    • Cost-effective strategy: Experiences from the different States on the fortified rice project, so far tally with the results of global programmes that use fortified food as a cost-effective strategy.
    • Reduction in anaemia: The study found a promising reduction (29.5%) in the prevalence of anaemia among women, adolescent girls, and children put together in Gadchiroli district.

    Case study of Noon meal scheme in Gujarat

    • In Gujarat, an eight-month long study on multiple micronutrient fortified rice intervention for schoolchildren (six-12 years) in 2018-2019, as part of the Midday Meal Scheme, found increased haemoglobin concentration, 10% reduction in anaemia prevalence, and, more importantly, improved average cognitive scores (by 11.3%).

    The probable outcome according to NITI Aayog

    • Iron deficiency anaemia is a major public health concern, because it is responsible for 3.6% of disability-adjusted life years or DALYs (years of life lost due to premature mortality and years lived with disability) according to the World Health Organization (WHO) i.e., a loss of 47 million DALYs, or years of healthy life lost due to illness, disability, or premature death (2016).
    • According to NITI Aayog (based on WHO meta-analysis on the impact of rice fortification), a rice fortification budget of around ₹2,800 crore per year can save 35% of the total or 16.6 million DALYs per year with no known risk of toxicity.
    • In India, the cost of one DALY lost due to iron deficiency anaemia (IDA) is approximately ₹30,000, while the cost of averting an IDA-related DALY is only ₹1,545, resulting in a cost-benefit ratio of 1:18.
    • Rice fortification, which costs less than 1% of the food subsidy bill (2018-19), has the potential to prevent 94.1 million anemia cases, saving ₹8,098 crore over a five-year period.

    Concerns over the excess of per capita nutrients intake?

    • Despite the programme’s proven efficacy, activists have expressed concern that excess iron overload from fortified rice has been dangerous for Jharkhand’s tribal population suffering from sickle cell anaemia and thalassaemia.
    • Iron levels in fortified rice range from 28 mg to 42.5 mg, folic acid levels from 75 mcg-125 mcg, and vitamin B12 levels from 0.75 mcg to 1.2 mcg (FSSAI standards).
    • Considering the per capita intake, in a family of three members with a rice consumption of approximately 60 grams per person, the additional intake is 2.45 mg of iron. This in fact compensates our daily losses of iron from the body, which is 1 mg-2 mg per day.

    Conclusion

    • Given its proven efficacy and cost-effectiveness, food fortification can help us in reducing micronutrient deficiencies and address overall health benefits. The intervention, carried out with precautions is the key to address the issue of the malnutrition.

    Mains question

    Q. What is micronutrient malnutrition? Food fortification programmes have made great strides in India, reducing micronutrient deficiencies in recent decades but more efforts are needed. Discuss

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  • Addressing the Leakages in PDS in the light of PMGKAY

    PMGKAY

    Context

    • The government of India extended Pradhan Mantri Garib Kalyan Anna Yojana (PMGKAY), a scheme to distribute free food grains to the poor, for another three months. However, issues of food grain leakages remains unaddressed.

    Pradhan Mantri Garib Kalyan Anna Yojana (PMGKAY)

    • PM-GKAY: Launched during COVID-19 crisis to provided food security to the poor, needy and the vulnerable households/beneficiaries so that they do not suffer on account of non-availability of adequate foodgrains. Under PMGKAY, effectively it has doubled the quantity of monthly foodgrains entitlements being normally delivered to beneficiaries.
    • Benefits: Under PMGKAY welfare scheme, 5 kg of food grain per person per month is provided free of cost for all the beneficiaries covered under the National Food Security Act (NFSA) including those covered under Direct Benefit Transfer (DBT).
    • Financial Expenditure: Financial implication for the Government of India has been about 3.45 Lakh Crore for Phase-VI of PMGKAY. With the additional expenditure of about Rs. 44,762 Crore for Phase-VII of this scheme, the overall expenditure of PMGKAY will be about Rs. 3.91 lakh crore for all the phases.
    • Grain Allotment: The total outgo in terms of food grains for PMGKAY Phase VII is likely to be about 122 LMT. Food grain for phases I- VII is about 1121 LMT.
    • Implementation: PM Garib Kalyan Ann Yojana (PMGKAY) has been implemented in the following phases –
    1. Phase I and II (8 months): April’20 to Nov.’20
    2. Phase-III to V (11 months): May’21 to March’22
    3. Phase-VI (6 months): April’22 to Sept.’22

    PMGKAY

    Impact of the PMGKY scheme

    • Ensuring food security and public health: Policymakers and experts concede that the scheme made a difference to food security and public health during the pandemic.
    • IMF commended the scheme: Be it the Parliamentary Standing Committee on Food and Public Distribution or the authors of an IMF-published working paper, “Pandemic, Poverty, and Inequality: Evidence from India” (April 2022), the scheme has received commendation.
    • Absorbing the shock in the pandemic: The working paper concluded that “the social safety net provided by the expansion of India’s food subsidy program absorbed a major part of the pandemic shock.”

    Why the experts are suggesting the study of PMGKY?

    • Rationalizing the budget: To keep the budgetary allocation under control, rules on quota for rice or wheat can be changed suitably.
    • Checking the diversion of Funds: While it is all right to provide foodgrains free during the pandemic, the central and State authorities need to ponder over the scheme’s continuance, given the chronic problem of diversion from the Public Distribution System (PDS).
    • Combing the Centre and state subsidy: In many States, including West Bengal, Kerala and Karnataka, the 50 kg is free. In Tamil Nadu, for over 10 years, rice-drawing card holders have been getting rice free.

    PMGKAY

    How the transparent study of PMGKY will help in leakage detection?

    • Updating the database of beneficiary: Study should be the basis for updating the database of foodgrain-drawing card holders, scrutinising the data critically and zeroing in on the needy.
    • Automation of PDS: The task should not be onerous, given the widespread application of technological tools in the PDS such as Aadhaar, automation of fair price shops and capturing of the biometric data of beneficiaries.
    • Estimation of PHH: Using this database, the Centre and States can decide whether the size of the Priority Households (PHH) nearly 71 crores, can be pruned or not.
    • Reasonable price to avoid freebies culture: In addition, if they feel the need to go beyond the mandate of the NFSA, as is being done under the PMGKAY, they can supply the foodgrains at a reasonable price. The culture of providing essential commodities free of cost at the drop of a hat has to go.

    Conclusion

    • PMGKY has helped the needy in people in the dark period of pandemic. However, with good intention of government food grain leakages of PDS couldn’t be stopped. Transparent study of will certainly help in leakage detection and more targeted delivery.

    Mains Question

    Q. Schemes of food security are always with good intentions; However, lack of transparency and leakages disturbs targeted delivery. Discuss the measures to ensure the last mile delivery of food grains.

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