Model Answer
0 min readIntroduction
The National Food Security Act (NFSA), 2013, represents a landmark attempt by the Indian government to address the pervasive issues of hunger and malnutrition. It legally entitles approximately two-thirds of the population to a subsidized foodgrain supply, aiming to ensure access to adequate food at affordable prices. The Act builds upon previous food security initiatives like the Targeted Public Distribution System (TPDS) and seeks to enhance food availability, accessibility, and affordability. However, despite its noble intentions, the NFSA’s effective implementation has been fraught with challenges, and it has also triggered concerns within the international trade framework, specifically at the WTO.
Implementation Challenges
Several factors impede the effective implementation of the NFSA:
- Logistical Bottlenecks: India’s Public Distribution System (PDS) suffers from inadequate storage infrastructure, leading to significant foodgrain wastage. Transportation issues, particularly in remote areas, further complicate distribution. According to a 2019 report by the Ministry of Consumer Affairs, Food and Public Distribution, approximately 5% of foodgrains are lost during storage and transportation annually.
- Identification of Beneficiaries: Accurately identifying eligible beneficiaries remains a challenge. Exclusion errors (leaving out deserving individuals) and inclusion errors (including ineligible individuals) are common. The use of outdated census data and lack of robust verification mechanisms contribute to these errors.
- Financial Constraints: The NFSA places a significant financial burden on the government. Subsidizing foodgrains at the mandated prices requires substantial budgetary allocations. Fluctuations in global food prices and increased procurement costs can further strain the financial resources.
- Administrative Inefficiencies: Corruption, diversion of foodgrains, and lack of accountability within the PDS are persistent problems. Weak monitoring mechanisms and inadequate grievance redressal systems exacerbate these issues.
- Grain Quality: Concerns regarding the quality of foodgrains distributed through the PDS have been raised. Reports of substandard grains and contamination undermine the effectiveness of the program.
WTO Concerns
The NFSA has raised concerns within the WTO, primarily related to its potential impact on global agricultural trade:
- Peace Clause: India’s food subsidy program, as enshrined in the NFSA, exceeds the permissible limit of 10% of agricultural production as stipulated by the WTO’s Agreement on Agriculture (AoA). To address this, India has relied on a ‘Peace Clause’ which provides temporary protection from trade disputes. However, this clause is subject to periodic reviews and conditions.
- Trade-Distorting Subsidies: The large-scale procurement of foodgrains at Minimum Support Prices (MSPs) and their subsequent distribution through the subsidized PDS are considered trade-distorting subsidies by some WTO members. These subsidies can depress global prices and disadvantage farmers in other countries.
- Negotiations on Public Stockholding: India has been advocating for a permanent solution on public stockholding for food security purposes at the WTO. This would allow India to continue its food subsidy program without fear of trade disputes. However, negotiations have been stalled due to disagreements with other member countries, particularly the United States and Australia.
Comparative Analysis of Food Security Approaches
| Country | Food Security Approach | Key Features |
|---|---|---|
| India (NFSA) | Universal Targeted Public Distribution System | Subsidized foodgrains to 2/3 of population; MSP for farmers. |
| Brazil (Fome Zero) | Multi-faceted Social Programs | Cash transfers, food banks, school feeding programs, and agricultural support. |
| United States (SNAP) | Supplemental Nutrition Assistance Program | Provides food assistance to low-income individuals and families through electronic benefit transfer cards. |
Conclusion
The NFSA holds immense potential to alleviate hunger and malnutrition in India, but its success hinges on addressing the significant implementation challenges. Strengthening the PDS infrastructure, improving beneficiary identification, ensuring financial sustainability, and enhancing administrative efficiency are crucial. Simultaneously, India needs to actively engage with the WTO to secure a permanent solution on public stockholding, safeguarding its food security interests while adhering to international trade norms. A holistic approach combining domestic reforms and international negotiations is essential for realizing the full benefits of the NFSA.
Answer Length
This is a comprehensive model answer for learning purposes and may exceed the word limit. In the exam, always adhere to the prescribed word count.