<–2/”>a >WHO Defines Food Security to exists when all people, at all times, have physical, social and economic access to sufficient, safe and nutritious food which meets their dietary needs and food preferences for an active and healthy life.
Food security has three interlinked contents such as :-
- Availability of food,
- Access to food and
- absorption of food.
Food security is a multidimensional concept covering even the micro level household food security,energy intakes and indicators of Malnutrition.
Major components of food security are:-
- Production and Procurement
- Storage
- Distribution
Indian agriculture is rightly called as a gamble with Monsoon, variability in food production and rising Population creates food insecurity in the nation and worst effected are the downtrodden section of the Society.
While India has seen impressive economic Growth in recent years, the country still struggles with widespread POVERTY and hunger. India’s poor population amounts to more than 300 million people, with almost 30 percent of India’s rural population living in poverty. The good news is, poverty has been on the decline in recent years. According to official government of India estimates, poverty declined from 37.2% in 2004-05 to 29.8% in 2009-10.
Need for Self-Sufficiency:
India suffered two very severe droughts in 1965 and 1966. Food Aid to India was restricted to a monthly basis by USA under the P.L. 480 programme. The Green Revolution made a significant change in the scene. India achieved self-sufficiency in food grains by the year 1976 through the implementation of the seed- water-fertilizer policy adopted by the Government of India.
Food grain production increased four-fold during 1950-51 and 2001-2002 from 51 million tons to 212 million tones. The country is no longer exposed to real famines. But the regional variation in the success of Green Revolution which was chiefly limited to northern- Western states has lead to the divide in the nation. Evergreen revoloution and Bringing green revolution to eastern India is the need of the hour.
Green revolution was focused on wheat and rice and thus the production of pulses was stagnant.
National Food Security Mission comprising rice, wheat and pulses to increase the production of rice by 10 million tons, wheat by 8 million tons and pulses by 2 million tons by the end of the Eleventh Plan (2011-12). The Mission is being continued during 12th Five Year Plan with new targets of additional production of food grains of 25 million tons of food grains comprising of 10 million tons rice, 8 million tons of wheat, 4 million tons of pulses and 3 million tons of coarse Cereals by the end of 12th Five Year Plan.
The National Food Security Mission (NFSM) during the 12th Five Year Plan will have five components
(i) NFSM- Rice;
(ii) NFSM-Wheat;
(iii) NFSM-Pulses,
(iv) NFSM-Coarse cereals and
(v) NFSM-Commercial Crops.
Government through Public Distribution System has tried to counter the problem of food insecurity by providing the food grains through fair price shops.
The central Government through Food Corporation of India has assumed the responsibilities of procurement,storage,transfer and bulk allocation of food grains to state governments.
The public distribution system (PDS) has played an important role in attaining higher levels of the household food security and completely eliminating the threats of famines from the face of the country, it will be in the fitness of things that its evolution, working and efficacy are examined in some details.
PDS was initiated as a deliberate social policy of the government with the objectives of:
i) Providing foodgrains and other essential items to vulnerable sections of the society at resonable (subsidised) prices;
ii) to have a moderating influence on the open market prices of cereals, the distribution of which constitutes a fairly big share of the total marketable surplus; and
iii) to attempt socialisation in the matter of distribution of essential commodities.
The focus of the Targeted Public Distribution System (TPDS) is on “poor in all areas” and TPDS involves issue of 35 Kg of food grains per family per month for the population Below Poverty Line (BPL) at specially subsidized prices. The TPDS requires the states to Formulate and implement :-
- foolproof arrangements for identification of poor,
- Effective delivery of food grains to Fair Price Shops (FPSs)
- Its distribution in a transparent and accountable manner at the FPS level.
India is the third largest producer of cereals, with only China and the USA ahead of it. India occupies the first position in milk production and is the third largest producer of fish and second largest producer of inland Fisheries-2/”>Fisheries in the world. According to ministry of Agriculture ,India is likely to produce a record 273.38 million tonnes of food grains 2016/17, slightly higher than the previous estimate of 271.98 million tonnes.
Economic growth is typically accompanied by improvements in a country’s food supply, both quantitative and qualitative, and a gradual reduction in nutritional deficiencies. It also brings about changes in the production, processing, distribution and Marketing of food. Diets evolve over time and are influenced by factors such as income, prices, individual preferences and beliefs, cultural traditions, as well as geographical, environmental, social and economic factors.
India faces a greater food challenge – having only 2.3 per cent share in world’s total land area it has to ensure food security to about 17.5 per cent of the world’s population. Total foodgrain production is estimated at an all-time high of 272 million tonnes in 2016-17, 8% higher than the 251.6 million tonnes last year, and surpassing the previous record of 265 million tonnes in 2013-14.
Wheat production is estimated to rise by 4.7% to 96.6 million tonnes in 2016-17 (compared to 92.3 million tonnes in 2015-16),
Production of pulses is likely to rise 35% from 16.4 million tonnes last year to 22.1 million tonnes in 2016-17.
Production of rice, the most popular staple, is estimated to increase by over 2 million tonnes, from 104.4 million tonnes last year to 106.7 million tonnes in 2016-17.
As per 2nd Advance Estimates, the estimated production of major crops during 2016-17 is as under:
Foodgrains – 271.98 million tonnes (record)
- Rice – 108.86 million tonnes (record)
- Wheat – 96.64 million tonnes (record)
- Coarse Cereals – 44.34 million tonnes (record)
- Maize – 26.15 million tonnes (record)
- Pulses – 22.14 million tonnes (record)
- Gram – 9.12 million tonnes
- Tur – 4.23 million tonnes (record)
- Urad – 2.89 million tonnes (record)
Oilseeds – 33.60 million tonnes (record)
- Soyabean – 14.13 million tonnes
- Groundnut – 8.47 million tonnes
- Castorseed – 1.74 million tonnes
Cotton – 32.51 million bales (of 170 kg each)
Sugarcane – 309.98 million tonnes
Benefiting from the green revolution technologies introduced in 1965-66, the per capita net availability of foodgrains per annum in India increased from 144.1 kg per capita per year in 1951 to a peak of 186.2 kg per capita per year in 1991. Post-1990s though, there is a clear decline in the per capita foodgrain availability which has declined to 160.1 kg per capita per year in 2010.
Since agricultural growth is limited, imports can help improve the country’s supply situation for a short term. But for the long term, the country will need to focus on productivity enhancement, through public Investment in Irrigation, research and efficient use of water, plant Nutrition and other inputs.
Administered Prices INCLUDING MSP AND PROCUREMENT PRICES
Historical context
- The emergence of agricultural Price Policy in India was in the backdrop of Food scarcity and price fluctuations provoked by drought, floods and international prices for exports and imports. This policy in general was directed towards ensuring reasonable food prices for consumers by providing food grains through Public Distribution System (PDS) and inducing adoption of the new technology for increasing yield by providing a price support mechanism through Minimum Support Price (MSP) system.
- In recognition of the importance of assuring reasonable produce prices to the farmers, motivating them to adopt improved technology and to promote investment by them in farm enterprises, the Agricultural Prices Commission (renamed as the Commission for Agricultural Costs and Prices in 1985) was established in 1965 for advising the Government on agricultural prices policy on a continuing basis.
- The thrust of the policy in 1965 was to evolve a balanced and integrated structure to meet the overall needs of the economy and with due regard to the interests of the producers and the consumers. The first Commission was headed by Prof M L Dantwala and in its final report the Commission suggested the Minimum Support Prices for Paddy.
Minimum Support Price (MSP):- is a form of market intervention by the Government of India to insure agricultural producers against any sharp fall in farm prices.
- The minimum support prices are announced by the Government of Indiaat the beginning of the sowing season for certain crops on the basis of the recommendations of the Commission for Agricultural Costs and Prices (CACP).
- MSP is price fixed by Government of India to protect theproducer – farmers – against excessive fall in price during bumper production years.
- The minimum support prices are a guarantee price for their produce from the Government that this will be the minimum price at which their product will fetch.
- If the Market Price is above, MSP, the farmer can obviously sell it at the market In case the market price for the commodity falls below the announced minimum price due to bumper production and glut in the market,government agencies purchase the entire quantity offered by the farmers at the announced minimum price.
The major objectives are to support the farmers from distress sales and to procure food grains for public distribution.
As of 2015-16, Minimum support prices are currently announced for 24 commodities, which includes food grains like Wheat, paddy etc and non-Food Crops like raw cotton, raw jute etc.
- A pilot project under the Direct Payment Deficiency System (DPDS) for paying MSP guarantee for the cotton farmers has been initiated at Hinganghat taluka of Maharashtra in 2015. Under this system, the farmers will directly get the amount which is the difference between the Minimum Support Price (MSP) and the market price, should the market price fall below the MSP. For availing of the benefit, farmers would have to present proof of cotton sold at Agriculture Produce Market Committee yards, plus other papers such as ownership document, yield estimation and other details. If the pilot is successful, the DPDS would be rolled out in all cotton growing regions, as per the present decision. DPDS is essentially a mode of direct benefit transfer to cotton farmers.
Then there is this concept ofPROCUREMENT PRICE, which is the price at which government procures food grains for buffer stocking and PDS purposes through FCI.
- Consider the situation where, in the wake of an imminent food shortage that may occur, the traders are willing to procure food grains in advance, driving up the market price.
- When the market prices are much higher than the MSP, the farmer will obviously be willing to sell it in the market.
- But the government, still, needs to procure food grains on its own to meet its distribution commitments inPDS at subsidised rates (issue price) and to create the buffer stock, necessary to intervene from supply side in case there is food deficiency and high food Inflation.
- Therefore the government so as to fulfil these commitments, declares a Procurement price which is > or = to the MSP.
The major difference between MSP and PP is that while PP is for food grains only, MSP is for 24 crops which includes both food grains and non-food grains.
Method of Calculation
- In formulating the recommendations in respect of the level of minimum support prices and other non-price measures, the CACP takes into account a comprehensive view of the entire structure of the economy of a particular commodity or group of commodities.
- Other Factors include cost of production, changes in input prices, input-output price parity, trends in market prices, demand and supply, inter-crop price parity, effect on industrial cost structure, effect on cost of living, effect on general price level, international price situation, parity between prices paid and prices received by the farmers and effect on issue prices and implications for subsidy.
- The Commission makes use of both micro-level data and aggregates at the level of district, state and the country.
Supply related information – area, yield and production, imports, exports and domestic availability and stocks with the Government/public agencies or Industry, cost of processing of agricultural products, cost of marketing – storage, transportation, processing, marketing Services, taxes/fees and margins retained by market functionaries; etc. are also factored in.
Report of National Commission for Farmers (NCF) had recommended that MSP should be at least 50% more than the weighted Average cost of production. However, this had not been accepted by the Government.
Procurement at MSP
- Farmers are made aware of the procurement operations by way of advertisements like displaying banners, pamphlets, announcement for procurement and specification in print and electronic media.
- Some States have taken steps to pre-register farmers for ensuring procurement from them through a Software system.
- Keeping in view the procurement potential areas, procurement centres for MSP operations are opened by Government agencies, both Food Corporation of India (FCI) and State Government, after mutual consultations.
- Procurement centres are opened by respective State Govt. Agencies/ FCI taking into account the production, marketable surplus, convenience of farmers and availability of other Logistics / Infrastructure-2/”>INFRASTRUCTURE such as storage and transportation etc. Large number of temporary purchase centres in addition to the existing mandis and depots/godowns are also established at key points for the convenience of the farmers.
- The Govt. agencies also engage Co-operative Societies and Self Help Group which work as aggregators of produce from farmers and bring the produce to purchase centres being operated in particular locations/areas and increase outreach of MSP operations to small and marginal farmers. These Co-operative Societies are in addition to the direct purchases from farmers.
- Co-operative societies/Self Help Groups are engaged in many States like Bihar, Chhattisgarh, Odisha, Maharashtra, Karnataka, Jharkhand and Rajasthan. Whereas, in some states like Punjab and Haryana, the Government of India has permitted the State Governments to engage locals for procurement of food grains from the farmers on payment of commission. These steps have been taken by Government of India so that Govt. agencies can procure maximum food grains directly from farmers by expanding out- reach of MSP benefit to farmers.
- Food Corporation of India (FCI) is the designated central nodal agency for price support operations for cereals, pulses and oilseeds.
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Food security is a state of affairs in which all people, at all times, have physical, social, and economic access to sufficient, safe, and nutritious food to meet their dietary needs and food preferences for an active and healthy life.
There are four pillars of food security:
- Food availability: This refers to the quantity of food produced or available in a country. It is determined by factors such as Climate, land use, agricultural technology, and trade.
- Food access: This refers to the ability of people to obtain food. It is determined by factors such as income, prices, and distribution systems.
- Food utilization: This refers to the ability of people to use food for their nutritional needs. It is determined by factors such as Health, Education, and sanitation.
- Food stability: This refers to the ability of a country to maintain food security over time, despite shocks such as droughts, floods, or economic crises.
Agricultural pricing is the process of determining the prices of agricultural products. It is important because it affects the incomes of farmers, the prices of food, and the efficiency of the agricultural sector.
There are two main types of agricultural pricing:
- Market pricing: This is the process of allowing market forces to determine the prices of agricultural products.
- Government intervention: This is the process of the government intervening in the market to set prices or provide subsidies to farmers.
Government intervention in agricultural pricing can be used to achieve a variety of objectives, such as:
- Increasing farm incomes: The government can set prices above market levels to increase farm incomes.
- Stabilizing prices: The government can use price controls or subsidies to stabilize prices and protect farmers from fluctuations in the market.
- Ensuring food security: The government can use price controls or subsidies to ensure that there is a sufficient supply of food at affordable prices.
Food procurement is the process of acquiring food from farmers. It is important because it helps to ensure that there is a sufficient supply of food available for the population.
There are two main types of food procurement:
- Public procurement: This is the process of the government acquiring food from farmers.
- Private procurement: This is the process of private companies acquiring food from farmers.
Public procurement is often used to achieve food security objectives. The government may set minimum prices for farmers or provide subsidies to encourage them to produce more food. The government may also purchase food directly from farmers and distribute it through the public distribution system.
Private procurement is often used to meet commercial objectives. Private companies may purchase food from farmers to sell in the market or to use in their own products.
The public distribution system (PDS) is a system of food distribution that is used to provide food to low-income households. The PDS is important because it helps to ensure that everyone has access to food, regardless of their income.
The PDS works by providing food at subsidized prices to low-income households. The food is distributed through a Network of fair price shops, which are also known as ration shops.
The PDS is a controversial system. Some people argue that it is an effective way to provide food to the poor, while others argue that it is inefficient and corrupt.
The PDS has been reformed several times in recent years. The most recent reform was in 2013, when the government introduced the Targeted Public Distribution System (TPDS). The TPDS is a more targeted system that provides food to only the poorest households.
The TPDS has been successful in reducing hunger and malnutrition in India. However, it is still not clear whether it is the most efficient way to provide food to the poor.
What is food security?
Food security is a condition in which all people, at all times, have physical, social, and economic access to sufficient, safe, and nutritious food to meet their dietary needs and food preferences for an active and healthy life.
What are the four pillars of food security?
The four pillars of food security are availability, access, utilization, and stability.
- Availability: Food must be available in sufficient quantities to meet the needs of the population. This means that there must be enough food produced, or imported, to meet demand.
- Access: People must have the means to acquire food, either through their own production or through purchase. This means that they must have access to land, water, and other Resources, as well as the income to purchase food.
- Utilization: People must be able to use food effectively to meet their nutritional needs. This means that they must have access to clean water, sanitation, and health care, as well as knowledge about nutrition.
- Stability: Food security must be sustainable over time. This means that there must be policies in place to ensure that food production and access are not disrupted by shocks, such as droughts, floods, or economic crises.
What are the causes of food insecurity?
There are many factors that can contribute to food insecurity, including:
- Poverty: People who are poor are more likely to be food insecure because they lack the resources to purchase food.
- Conflict: Conflict can disrupt food production and distribution, leading to food insecurity.
- Climate Change: Climate change can lead to droughts, floods, and other extreme weather events that can disrupt food production and distribution, leading to food insecurity.
- Disease: Disease can reduce people’s ability to work and earn income, making them more vulnerable to food insecurity.
- Natural disasters: Natural disasters, such as Earthquakes, hurricanes, and Tsunamis, can damage crops and infrastructure, leading to food insecurity.
What are the consequences of food insecurity?
Food insecurity can have a number of negative consequences, including:
- Hunger: Food insecurity can lead to hunger, which can have a number of health consequences, including malnutrition, stunted growth, and impaired cognitive development.
- Poor health: Food insecurity can also lead to poor health, as people who are food insecure are more likely to suffer from chronic diseases such as obesity, diabetes, and heart disease.
- Social problems: Food insecurity can also lead to social problems, such as crime and violence.
- Economic problems: Food insecurity can also lead to economic problems, as people who are food insecure are more likely to miss work, have lower productivity, and earn lower wages.
What are the solutions to food insecurity?
There are a number of solutions to food insecurity, including:
- Investing in agriculture: Investing in agriculture can help to increase food production and make food more affordable.
- Providing social safety nets: Social safety nets, such as food stamps and cash transfers, can help to ensure that people have the resources they need to purchase food.
- Improving access to education and healthcare: Improving access to education and healthcare can help to reduce poverty and improve health, which can help to reduce food insecurity.
- Addressing the root causes of conflict: Addressing the root causes of conflict can help to prevent food insecurity.
- Adapting to climate change: Adapting to climate change can help to reduce the Impact Of Climate Change on food production and distribution.
- Building resilience: Building resilience can help people to cope with shocks, such as droughts, floods, and economic crises.
What is the role of the government in addressing food insecurity?
The government has a number of roles to play in addressing food insecurity, including:
- Providing food assistance: The government can provide food assistance to people who are food insecure through programs such as food stamps and school meals.
- Investing in agriculture: The government can invest in agriculture to help to increase food production and make food more affordable.
- Providing social safety nets: The government can provide social safety nets, such as food stamps and cash transfers, to help to ensure that people have the resources they need to purchase food.
- Regulating the food industry: The government can regulate the food industry to ensure that food is safe and affordable.
- Providing education and outreach: The government can provide education and outreach to help people understand the causes of food insecurity and the solutions to food insecurity.
Question 1
Which of the following is not a component of the Public Distribution System (PDS)?
(A) Fair Price Shops
(B) Targeted Public Distribution System (TPDS)
(C) Antyodaya Anna Yojana (AAY)
(D) Rashtriya Food Security Mission (RFSM)
Answer
(D)
The Rashtriya Food Security Mission (RFSM) is a centrally sponsored scheme launched in 2007 to provide food security to the poor. It is not a component of the Public Distribution System (PDS).
Question 2
Which of the following is not a objective of the Public Distribution System (PDS)?
(A) To ensure food security to the poor
(B) To stabilize prices of essential commodities
(C) To provide EMPLOYMENT to the rural poor
(D) To promote agricultural production
Answer
(C)
The Public Distribution System (PDS) is a food security system in India that provides subsidized foodgrains to the poor. Its objectives are to ensure food security to the poor, stabilize prices of essential commodities, and promote agricultural production.
Question 3
Which of the following is not a type of foodgrain distributed through the Public Distribution System (PDS)?
(A) Wheat
(B) Rice
(C) Sugar
(D) Pulses
Answer
(C)
The Public Distribution System (PDS) distributes wheat, rice, and pulses to the poor. Sugar is not a type of foodgrain distributed through the PDS.
Question 4
Which of the following is not a beneficiary of the Public Distribution System (PDS)?
(A) Below Poverty Line (BPL) households
(B) Antyodaya Anna Yojana (AAY) households
(C) Above Poverty Line (APL) households
(D) All India Anna Dravida Munnetra Kazhagam (AIADMK) members
Answer
(D)
The Public Distribution System (PDS) is a food security system in India that provides subsidized foodgrains to the poor. Its beneficiaries are Below Poverty Line (BPL) households, Antyodaya Anna Yojana (AAY) households, and some Above Poverty Line (APL) households. AIADMK members are not eligible for benefits under the PDS.
Question 5
Which of the following is not a criticism of the Public Distribution System (PDS)?
(A) It is inefficient
(B) It is corrupt
(C) It is not targeted effectively
(D) It is not sustainable
Answer
(D)
The Public Distribution System (PDS) is a food security system in India that provides subsidized foodgrains to the poor. It has been criticized for being inefficient, corrupt, and not targeted effectively. However, it is generally considered to be sustainable.