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Govt shaky to foot Sonia’s Bill?
Congress president Sonia Gandhi’s dream project Food Security Bill is giving sleepless nights to the UPA Government in view of the huge subsidy burden and huge foodgrain requirement for implementing the populist measure.
“As Finance Minister when I think of the enormity of the subsidies to be provided, I lose my sleep. There is no doubt,” Finance Minister Pranab Mukherjee admitted on Wednesday while Agriculture Minister Sharad Pawar questioned the practicality of the move.
Mukherjee’s concern was over rising subsidy bill, which is expected to overshoot `2.34 lakh crore mark this fiscal. The Government has taken a “gigantic responsibility” to implement the Food Bill, he said while addressing a two-day conference of State Food and Agriculture Ministers.
The Government estimates that the implementation of the proposed legislation will entail a massive expenditure of `110, 000 crore thereby putting further pressure on the economy. This expenditure will further rise in future due to increasing cost of inputs like fertiliser, irrigation and power.
The Finance Minister said that “massive investment” will be needed in the agriculture sector along with a second generation of green revolution to increase foodgrain production. His concern was understandable as implementation of the Food Bill would require raising the annual procurement level to about 65 million tonnes from the current average 55 million tonnes.
On the other hand Pawar questioned the mode of implementation of the proposed legislation. “I will be failing in my duty if I do not emphasise the fact that the Food Security Act will never succeed in achieving its goal in letter and spirit, if we try to push the same through the existing PDS apparatus.” He said that “a massive process re-engineering” was required to make the PDS compatible with the proposed law.
“My only concern is whether the existing mechanism is compatible enough with the spirit of this Act?” Pawar said and outlining serious limitations in the existing PDS such as capacities of mandis, financial position of State agencies, manpower, storage and movement among others.
When asked about Pawar’s reservation on Food Bill, Food Minister KV Thomas said, “Whatever he said was not wrong. We need to produce more and strengthen PDS to implement this law.”
However, Congress spokesman Rashid Alvi asserted that the party’s pledge to implement the Bill will definitely be fulfilled but agreed with Pawar’s contention that there is a need for reforms in the existing structure of PDS.
“Food Security Bill is a very important Bill for the people living below the poverty line. This is Congress’ commitment. We will definitely fulfil it. Whatever problems come in its way will be sorted out,” Alvi said.
Sonia, who heads the National Advisory Council which prepared the draft Bill providing right to food, is keen that the Government must pass the legislation at the earliest. But the Bill has already faced criticism from Chief Minister of Bihar Nitish Kumar, J Jayalalitha of Tamil Nadu, Mayawati of Uttar Pradesh and Mamata Banerjee of West Bengal.
The Bill provides legal guarantee of cheap foodgrains to the two-third of the country’s population. It seeks to cover up to 75 per cent of the rural population and 50 per cent of urban households and proposes the right to 7 kg foodgrain per person — at `3 per kg for rice, `2 per kg for wheat and `1 per kg for coarse grains to the priority or below poverty line beneficiaries. The general category (above poverty line) beneficiaries will get at least 3 kg of ration per person per month at half the minimum support price (MSP) of grains.
Congress president Sonia Gandhi’s dream project Food Security Bill is giving sleepless nights to the UPA Government in view of the huge subsidy burden and huge foodgrain requirement for implementing the populist measure.
“As Finance Minister when I think of the enormity of the subsidies to be provided, I lose my sleep. There is no doubt,” Finance Minister Pranab Mukherjee admitted on Wednesday while Agriculture Minister Sharad Pawar questioned the practicality of the move.
Mukherjee’s concern was over rising subsidy bill, which is expected to overshoot `2.34 lakh crore mark this fiscal. The Government has taken a “gigantic responsibility” to implement the Food Bill, he said while addressing a two-day conference of State Food and Agriculture Ministers.
The Government estimates that the implementation of the proposed legislation will entail a massive expenditure of `110, 000 crore thereby putting further pressure on the economy. This expenditure will further rise in future due to increasing cost of inputs like fertiliser, irrigation and power.
The Finance Minister said that “massive investment” will be needed in the agriculture sector along with a second generation of green revolution to increase foodgrain production. His concern was understandable as implementation of the Food Bill would require raising the annual procurement level to about 65 million tonnes from the current average 55 million tonnes.
On the other hand Pawar questioned the mode of implementation of the proposed legislation. “I will be failing in my duty if I do not emphasise the fact that the Food Security Act will never succeed in achieving its goal in letter and spirit, if we try to push the same through the existing PDS apparatus.” He said that “a massive process re-engineering” was required to make the PDS compatible with the proposed law.
“My only concern is whether the existing mechanism is compatible enough with the spirit of this Act?” Pawar said and outlining serious limitations in the existing PDS such as capacities of mandis, financial position of State agencies, manpower, storage and movement among others.
When asked about Pawar’s reservation on Food Bill, Food Minister KV Thomas said, “Whatever he said was not wrong. We need to produce more and strengthen PDS to implement this law.”
However, Congress spokesman Rashid Alvi asserted that the party’s pledge to implement the Bill will definitely be fulfilled but agreed with Pawar’s contention that there is a need for reforms in the existing structure of PDS.
“Food Security Bill is a very important Bill for the people living below the poverty line. This is Congress’ commitment. We will definitely fulfil it. Whatever problems come in its way will be sorted out,” Alvi said.
Sonia, who heads the National Advisory Council which prepared the draft Bill providing right to food, is keen that the Government must pass the legislation at the earliest. But the Bill has already faced criticism from Chief Minister of Bihar Nitish Kumar, J Jayalalitha of Tamil Nadu, Mayawati of Uttar Pradesh and Mamata Banerjee of West Bengal.
The Bill provides legal guarantee of cheap foodgrains to the two-third of the country’s population. It seeks to cover up to 75 per cent of the rural population and 50 per cent of urban households and proposes the right to 7 kg foodgrain per person — at `3 per kg for rice, `2 per kg for wheat and `1 per kg for coarse grains to the priority or below poverty line beneficiaries. The general category (above poverty line) beneficiaries will get at least 3 kg of ration per person per month at half the minimum support price (MSP) of grains.
