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National Food Security Act, 2013: Problems and Prospects

Article in Engage/social action · December 2018

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 National Food Security Act, 2013: Problems and Prospects
Amit Kumar, Damodar Suar, and Bimal Kishore Sahoo
Abstract
Despite favourable climate, abundant land, and diverse cropping patterns, India has remained
food insecure since its independence. During the last 70 years, various poverty alleviation
programmes have been introduced, with a primary one being the 2013 National Food
Security Act (NFSA). The Act, which aims to eradicate hunger and malnutrition, is a
repackaging of three earlier schemes: the Midday-meal (MDM), the Public Distribution
System (PDS) and the Integrated Child Development Schemes (ICDS). This article reviews
the relevant literature and explores the difficulties in and prospects for implementation of the
NFSA.

Keywords: NFSA, nutritional requirement, food grains, labour laws, Midday meal

Introduction
The Millennium Development Goals (MDGs), which were intended to end hunger and
poverty, failed to achieve their objectives by the deadline of December 2015. All member
countries met on 25 September 2015 to review and rewrite the goals, which included a
renaming to Sustainable Development Goals (SDG). Food security is at the core of these
goals, which have been defined as ‘the physical, social and economic access to sufficient,
safe and nutritious food by all people, all the time to meet their dietary needs and food
preferences for an active and healthy life’ (World Food Summit, 1996). In this context, India
had implemented the National Food Security Act (NFSA) in 2013. This review critically
examines the difficulties and problems in implementation of the Act and provides possible
solutions.

Problems
Of the total land area in the world, 33% is used for agriculture, 21% is used for grazing, and
12% is used as cropland (Defries, 2004). However, the global population is increasingly
causing a decline in per capita arable land area. Although most of the population resides in
rural areas, the UN-Habitat report has noted that people from rural areas are migrating to
urban areas (Lal, 2006). With this pattern of change, the 21st century will be an era of

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urbanisation, which will subsequently lead to a decline in agricultural practices, productivity,
per person availability of food grains, and ultimately result in food crises.
Malnutrition and starvation have been a significant problem in India since it gained
independence. Starvation continues despite various poverty and malnutrition eradication
programmes. However, it has been reduced by the green revolution since 1960, food storage,
which is provided by the Food Corporation of India since 1964, targeted public distribution
systems (PDS) since 1997, and the recent implementation of the NFSA in 2013. The NFSA
covers 75% of the population—90% in rural areas and 50% in urban areas. With current
coverage at 75% of the population under the Act, 39% are targeted households, and 46% are
general households. The beneficiaries are entitled to receive 5 kg/month of food grains.
Those living below the poverty line (BPL) receive this at the rate of Rupees 3, Rupees 2, and
Rupees 1 for rice, wheat, and coarse grains, respectively. On 10 September 2013, after
receiving presidential approval, the government implemented this model, despite severe
financial constraints. Initial financial estimate was one trillion rupees sourced from the
government’s exchequer (Report of High-Level Committee on FCI, 2015). In fiscal year
2012–13, the government earmarked 1.12 trillion rupees for food subsidies. The allocation
rose to 1.25 trillion rupees in fiscal year 2015–16 (Outcome Budget, 2015-16). However, the
committee supported the twin goals of (1) universalisation of the Act to promote the social
equality and (2) reduction of illegal sales of food grains to check the malpractices in PDS.
The Tamil Nadu model of universalisation of food security in India, which promotes the twin
goals, is a case in point.
After the introduction of the green revolution worldwide, research and aid in the agriculture
sector are severely affected. The research fund reduced from 55% to 33% between 1973 and
1993, though India made the highest agriculture contribution to the Gross domestic product
(GDP). The overall share of Oversees Development Aid decreased from 17% to 4% between
1980 and 2006, and estimates totalled 10% (20 metric tonnes) for food grain losses from farm
to fork of total food production (Ministry of Food and Civil Supplies, 1999). If we compare
pre-harvest losses to post-harvest losses, the food grain losses varies from 7% to 10% of the
total production from farm to market, and from 4% to 5% at the market and distribution
levels (World Bank, 1999). To overcome wastage apart from losses and shortages, intensive
research has begun in the fields of increasing soil fertility, land up-gradation, infrastructure
development, making of fertilisers, prevention of droughts, water management, use of

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indigenous knowledge, and resolving inadequate access to credit, improved crop varieties,
and better seeds (Flood, 2010).

Globally, 1.3 billion tonnes of food are wasted every year (Gustavasson et al., 2011). About
30% of cereals and 40-50% of root crops, fruits, and vegetables are wasted every year in
developed and developing countries (FAO, 2014). The food grains are sufficient to meet the
food requirements without wastage from farm to fork. Hence, food insecurity is not a
problem of agricultural production. The problem lies in the inefficient distribution of food
grains.

The rural infrastructure, especially for stocking food, has been severely ignored since
independence. Perishable food products, along with other food grains, have not been
transferred from farm to table properly. Mismanagement of food grains has led to price hike,
not only in India but also across globe leading to reduction in food diversity. The poor, being
the most vulnerable segment of the population, are affected by increasing costs of food
grains. Different mechanisms are available to check the quality of food grains as the stock
can perish due to mismanagement. Therefore, lack of systematic distribution from farm to
fork is escalating the problem.

A new form of imperialism—contract farming—is invading the agricultural sector. In this

approach, despite availability of adequate infrastructure, the farmers are unable to cultivate
crops of their choice. It is binding on the farmers to grow crops according to the loan
providers and supply the food grains at pre-harvest prices, without considering the market’s
supply and demand. Therefore, post-harvest management requires continuous monitoring. In
addition, land mortgages are a consistent problem among framers. Farmers should be released
from such vicious cycle of land mortgages. They can be motivated to enhance production
through field demonstrations of high-yield crop cultivation via use of balanced fertilisers,
pesticides, and irrigation along with other modern technological interventions. Once the crop
is ready, it requires storage facility. This can be developed with the support of the state or
farmers themselves. This will help farmers reaping the benefits of the forces of demand and
supply to get the better prices than the Minimum Support Price (MSP) of the state.
State procures only 30% of the total production and leave rest to the open market, which
keeps a balance between government programme and market's demand and supply. This
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procurement of 2 million tonnes of wheat and 3 million tonnes of rice is not creating any
additional financial burden, as it is equal to the emergency reserve (Kozica et al, 2016). The
major concern is the dispute over subsidies under the agreement on agriculture in WTO, even
the NFSA subsidy comes frequently under the scanner of WTO. Along with this subsidy, the
MSP on various crops was questioned on the same platform. (Business line, 25 Sep. 2017). If
the MSP is reduced, it could bring down minimum 10% of total agriculture product value.
The MSP for rice and wheat has grown by 1% and 2 % respectively. In case of insufficient
stock, export is banned, whereas in case of sufficiency, export is promoted. The idea of cash
transfer for purchasing of food grains does not seem practical because this cash can be
diverted in some other activities leaving the beneficiaries in the state of food crunch.

Understanding Dietary Requirements

Poor people spend almost three-quarters of their total income on food consumption (Cranfield
et al., 2007). The calorie intake of Western people is dependent mostly on maize and its
varieties, leading to increases in maize prices that continue today. In India, 2,400 and 2,200
calories are benchmarked as the dietary requirements for rural males and females
respectively. By contrast, the numbers are 2,200 and 2,000 calories for urban males and
females respectively. The male child requires 1400–1800 calories, whereas the female child
requires 1200–1600 calories (WHO, 1985). In fact, malnutrition starts as early as conception,
with 22% of Indian babies born underweight versus 10% rate in other developing countries
(ICMR, 2009). In addition, 46% of the rural population and 28% of the urban population live
below the poverty line in India (Gulati et al., 2012). Malnutrition, stunts growth and
subsequently undermines the development of citizens.

The allocated food grains under the Act are barely enough to sustain the recipients, and the
situation worsens when food grains are delivered to vendors erratically. Food grains that are
not distributed in the respective months become almost impossible to receive later on under
any circumstances. It has been reported that 55% of food grains have been diverted illegally
leading to lower quantities of food availability for the intended beneficiaries (Jha and
Ramaswami, 2010). The Planning Commission estimates that corruption and inefficiency are
as high as 70% in the PDS (Kapur et al., 2008). Discussions with beneficiaries during field
surveys have revealed that a PDS vendor charges 50 paise in Samastipur and one rupee in
Patna and Muzzaffarpur villages per each kilograms of food grains in Bihar, whereas no
4
additional money is charged in Haryana (Kumar, 2018). Along with the extra money being
charged, lower quantities of food grains are being distributed, in a way leaving beneficiaries
unable to receive their required benchmark calories.

Although the MSP had regularly increased since 2005, farmers have been receiving less
money than the MSP for their food grains. Hence, farmers are working at their own risk and
experiencing a scarcity of resources like seeds, manure, irrigation, and fertilisers during
cultivation. Due to scarcity and irregular supply of agricultural inputs, there was only 46.24
quintal/hectare production of wheat in Haryana in 2015–16 as compared to 51.83
quintal/hectare in 2011-12 (Annual plan, Haryana 2015-16). The government has now
introduced an insurance scheme which costs almost Rs. 325 per hectare of land. By way of
this, farmers can receive Rs 4,500, Rs 9,500, and Rs 12,000 per hectare depending upon crop
sown and nature of land, in case 50% their crop is lost in a natural disaster the compensation
covers only a fraction of their loss (Business Standard, 2015). Procedural formality,
bureaucratic red-tape, and fewer benefits detract farmers.

Food prices had remained stable till 2000 and worldwide food availability was sufficient.
Integrated agricultural research resulted in the green revolution and made food grains
available at low prices. In 2008 when global food prices spike due to draughts, it resulted in
riots in two dozen countries (Gusatavasan, 2011). At that time, only G8 countries agreed to
achieve global food security, and their agreement was incorporated into the MDGs. Even at
G8 summit, crop health was not considered. The loss of food grains from farms leads to
increased food prices, which lead to less diversity in food selection because most of the
consumer’s money is invested in the purchase of cereals (Gusatavasan, 2011).
The supply of food grains through the PDS is also irregular. During field visits to villages in
Bihar and Haryana, most people stated that they received only ten quotas of food grains in
place of the required twelve quota per year, while they lost the remaining two quotas in the
chain of corruption. While shopkeepers feel helpless, system monitoring does not consider
such mishaps into consideration (Kumar, 2018).

Food distribution is equally responsible for food accessibility. Despite various attempts at
improvements, such as food shortage, transportation, and other allowances, gaps in
allocations to end users remain. However, PDS reforms have decreased the gaps from 60–
5
70% to 40–50% (Report of High-Level Committee on FCI, 2015). In addition, various public
lucrative schemes have increased the purchasing capacity of the poor. Eight states had not
implemented the NFSA as of February 2016 out of 29 states and 7 union territories,
(Parliament proceedings, 3 March 2016). The Act is only successful in areas where actual
commodities are supplied to people for direct consumption. Otherwise, beneficiaries pick up
their quotas from the PDS vendor, then exchange the same for either money or other
commodities from local shopkeepers.

There are far-flung rural and hilly areas where people desperately need food grains. Their
situation becomes worse during the rainy season and during natural calamities. Although
efforts of state could be made towards making food grains available, high costs often
dissuade such efforts. Whatever food grains are available PDS vendors sell those at higher
prices in the open market. Those who have migrated with their family in search of a better
livelihood, they are unable to access their quota of food grains because of not having
managed to transfer their NFSA card proving permanent residence status. A Point of Selling
(POS) machine at the delivery point will help in monitoring and maintenance of records of
food disbursement to beneficiaries. It would also help in arresting commissions expropriated
by vendors and migrants will be able to withdraw their quota of food grains minimising
chance of manipulation. Migrated beneficiaries would collect their quota of food grains from
any vendor; and commission along with food grains could be credited to the account of the
vendor.

The Role of NFSA in Protecting Basic Health and Education

As per the National Family Health Survey 2005–2006, 33% of women and 28% of Indian
men had a body mass index (BMI) below normal. In addition, 46% of children below three
years are underweight, 20% of children under five years are malnourished, and altogether
40% of children are chronically malnourished. Furthermore, 69% of children aged 6–35
months had anaemia, and 56% of married women aged 15–49 years, 24% of married men in
the same age group, and 58% of pregnant women were also anaemic (NFHS-3, 2005-06).
India ranks 75th out of 109 countries on the multidimensional poverty index, standing far
below its BRICS’s (Brazil, Russia, India, China, and South Africa) counterparts (Alkire,
2010). As per the HUNGAMA (Hunger and Malnutrition) survey, 42% of children are
6
underweight and 59% have stunted growth. Additionally, 30% of the population face food
insecurity in India (Hunger and Malnutrition Survey, Nandi Foundation, 2011). Body-mass
index of around 60% people are below normal and 70% children have severe acute
malnutrition after two years of implementation of the Act (Kumar, 2018). Feeding the
malnourished is an enormous challenge that requires synchronising technical intervention
with sustainable intensification, precision agriculture, and post-harvest storage technology.

The NFSA also needs to be properly managed at the school level because teachers engaged in
implementation of the Act complain of their under-performance in teaching. There seem to be
gaps in monitoring and execution of the mid-day-meal (MDM) programmes. Many children
from rural schools remain absent in agricultural seasons for helping their parents in
cultivation and allied activities. This further increases the gap between children on the
register and children who are actually present, making school inspections of higher
authorities a mockery. Also, children remain deprived of adequate calorie.

Requirement to upgrade labour law to align it with manpower requirements

The NFSA hires a large workforce during procurement seasons, and many of these workers
may not be required later in the year. Even the Contract Labour (Regulation and Abolition)
Act of 1970 which regulate the conditions of work, working conditions, welfare, and social
security is silent on various issues that arise when less than ten people are employed with the
aid of power, it affects the subsistence of workers employed under the NFSA for their
livelihood, especially during off season. Workers face dual problems after any accident—one
in meeting their subsistence and the other in availing their treatment—because they lack
protection of any kind by the social security scheme. Employees involved in services of
NFSA are getting less than the minimum wages. Working conditions and social security
provisions are inadequate as per law (Kumar, 2018).The situations of work and working
conditions must comply with the existing Contract Labour (Regulation and Abolition) Act.
However, many employees still lack basic amenities in the workplace. With the
implementation of this Act, adherence to existing legal norms of temporary and permanent
worker is essential.

7
Empowerment of Women
In NFSA, eldest women who is more than eighteen years are considered as the head of the
households instead of male members for issue of ration card. When there are no women, the
eldest male members of the household will be the head of the household. However, in both
the cases use of food grains is decided by senior or adult male members. Like other schemes,
women play a proxy role, although they carry the responsibility to manage food for all family
members.

Empowerment is the expansion of freedom of choice and action, leading to an increase in

one’s authority and control over available resources (World Bank, 2003). If women working
on farms decide what to produce and how to do so, it makes them economically independent.
Economic empowerment enables females to be equal members of society and also generates
confidence and self-respect among them so that they can ensure the food security of the
family.

Prospects
After reviewing the literature and incorporating observations from the field, the following are
the recommended solutions:
Increases in population will increase the demand for food grains, and current trends of
urbanisation will lead to decrease in agricultural land, especially in urban areas. Therefore,
research in agriculture and allied sectors should be accelerated to enhance production of food
grains to feed the increasing population.
Universal scientific methods can be used for beneficiary identification so that genuine people
included to the exclusion of fake claimants, because it is needed to prevent the illegal
diversion of food grains to the open market (Wadhwa Committee, 2007). Linking Aadhar
card with the listed beneficiaries in NFSA can help in identifying bogus ration cards. It will
also check the diversion of food grains to black markets.
Kerala’s computerisation of food security is a classic example. Computerisation should not
be limited to the endpoint; rather, it should be there at the levels of procurement, storage,
transportation, and distribution of food grains to beneficiaries. In the wake of manipulation, it
will protect the illegal diversion of food grains and check the shortage shown in supplied
food grain bags. Even during transportation, a Global Positioning System (GPS) could be
used to track the movement of mobile vehicles carrying PDS food grains.
8
The universalisation of the NFSA requires only 3% of GDP in India (Bhalla, 2013). Tamil
Nadu and Chhattisgarh’s universalisation of food security created a classic model that can be
replicated throughout India. This will help provide food grains to all people and reduce illegal
diversions of food grains to local market by expanding coverage, improving delivery system,
and increasing transparency.
The suspicious behaviour of vendors can be monitored with the effort from village
committees, SHG’s, and cooperative societies at the end-point as well as at district and block
levels, preventing illegal diversion of food grains. During transitions from one scheme to
another such as PDS to targeted PDS and targeted PDS to NFSA, vendors are under severe
pressure from the beneficiaries due to newly introduced inclusion and exclusion criteria and
also from the state to maintain the newly introduced system. This dual pressure pushes them
to illegal practices to survive in the system (Khera, 2016). Therefore, the vendors’ income
base should be expanded by increasing the commission and allowing them to sell other
commodities apart from PDS products being supplied by Government machinery and
consumed by NFSA beneficiaries.
Conclusion
Although food security was accelerated via the implementation of the NFSA, research and
development are severely lacking in agriculture and allied fields, along with gross
mismanagement of food grains from field to fork. India has the world’s largest network of
food security programmes in the form of NFSA. However, various operational and financial
hurdles have occurred during its execution, and there is a need for effective implementation
to allow the programme’s impact to trickle down to all citizens who require food security.

The implementation of food security cannot be fulfilled without proper health, drinking
water, sanitation, and clean fuel for cooking, all of which have been incorporated into the
NFSA, the Sustainable Development Goals, and earlier Millennium Development Goals.
With proper implementation of the NFSA the objectives of the sustainable development goals
can only be achieved.

9
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