Food grains stored at FCI godown in Mysuru. , Photo Credit: MA Sriram
TeaThe Karnataka government’s decision to temporarily convert the promised Anna Bhagya scheme into Direct Benefit Transfer has brought into focus the limits of the state government’s policy intervention on a matter as important as food security.
Serious Problem
Under Anna Bhagya, the government had envisaged provision of five kilograms of free rice per person per month to 4.42 crore beneficiaries, including 45 lakh Antyodaya Anna Yojana (AAY) cardholders, 3.58 crore Priority Household (PHH) cardholders and 39 lakh cardholders Were. of Karnataka for its own category of PHHs. This was in addition to the regular entitlement of beneficiaries under the National Food Security Act (NFSA). To meet this commitment, the state would require about 2.3 lakh metric tonnes of rice every month. The Food Corporation of India (FCI) had agreed on June 12 to supply the quantity under the Open Market Sale Scheme-Domestic (OMSS-D) for July, but the Center had a different plan. Anna Bhagya, which was to be launched on July 1, ran into a serious problem on June 13 when the Union Food Ministry stopped the sale of rice and wheat under OMSS-D to all state governments, barring exceptions. Karnataka had planned to use OMSS-D to implement the scheme, which was one of the five pre-poll guarantees of the Congress party.
Although OMSS is for sale of surplus stocks of wheat and rice through e-auction in the open market at pre-determined prices, to improve the supply of foodgrains and control the price line, states are generally required to buy surplus. has allowed. Stock without E-Auction. OMSS is now limited to accommodate small and marginal buyers and traders. Presently a bidder can purchase a quantity ranging from 10-100 MT in a single bid. The Centre’s decision surprised many states, especially rice-deficit states, as OMSS is one of the routes they use to meet their allocation. The suddenness of the decision particularly hit Karnataka, which had started preparations to launch the scheme in anticipation of FCI’s help. The whole controversy could have been avoided if there was an effective communication system between the Central Department of Food and Public Distribution and FCI, a statutory body under the Central Government. While there were suggestions to make available ragi and jowar grown in parts of Karnataka to partially meet the projected demand, this too could lead to supply constraints, as the required quantity was substantial.
Of course, the Center has its own compulsions in limiting the availability of food grains under OMSS-D. The quarterly stock position of rice and wheat in the central pool as on April 1, 2023, was the lowest in the last three years, despite being much higher than the level prescribed in the food grain stocking norms. Uncertainty about the south-west monsoon and its likely adverse effect on food grain production are factors that the authorities should consider before taking a decision to restrict supplies. All this only justifies the need for more broad-based counselling. Also, whether it is possible to rely on private traders to reduce prices for those not covered under NFSA is a contentious question.
There is a difference between the present and the immediate past: The Pradhan Mantri Garib Kalyan Anna Yojana (PMGKAY), which was implemented in the wake of the COVID-19 pandemic, is no longer in force. The scheme provided five kilograms of free food grains per person per month from a central pool to AAY and PHH cardholders across India.
This episode has given an important message to the states that they should have their own mechanism before launching any scheme. Even if there was no dispute between the Central and Karnataka governments, the sustainability of Anna Bhagya was questionable as supplies through OMSS-D alone would not have been sufficient. From 2018-19 to 2022-23, the overall average evacuation by all the players in the country is around 16 lakh tonnes. The highest quantity of about 24.6 lakh tonnes was extracted in 2020-21, which was the first year of COVID-19. But Karnataka will need about 27.5 lakh tonnes annually, which is about 1.5 lakh tonnes more than the state’s allocation under NFSA for 2023-24. Thus, states must consider the bigger picture to ensure the workability of their new schemes. There is reason for the Center to be really worried if every other state promises a scheme of its own in the food sector based on the expectation that the central government and the FCI will come to its rescue regardless of the emerging reality. If states do not exercise discipline and such a trend goes unchecked, the country will not have a comfortable stock, leave alone a surplus. Also, the problem was not only of availability, but also of cost. FCI had reportedly agreed to supply the grain to Karnataka at ₹36.6 per kg. Assuming that the required quantity is achieved at this cost, the monthly expenditure would be approximately ₹840 crore.
not a tool of politics
At present there is no crisis on the food front. But the current situation should serve as a lesson to all political players to exercise restraint while making poll promises, especially on matters related to food security. Also, they should stop seeing food grains as an instrument of politics and start objectively evaluating programs like PMGKAY and Anna Bhagya.