UPA’s food security farce A food policy for making poor poorer
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UPA’s food security farce A food policy for making poor poorer

Archive ManagerArchive Manager
Aug 30, 2009, 12:00 am IST
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Make sugar-coated promises before the elections. Make more such promises after the elections. This is the governance mantra for the UPA when it comes to feeding the hungry millions, leave aside alleviating the miseries of inflation-ravaged aam aadmi.

Even as drought is spreading like a fire across the country, the government has not opened community kitchens for the downtrodden across the country-a promise made by its leading constituent (Congress Party) during the Lok Sabha polls. Similarly, it is still in the brooding mode over the much-touted food security law.

It is yet to improve the supply of essential commodities in the open market through policy interventions to control rise in prices of food including vegetables and fruits. It has not yet banned export of wheat products and non-basmati rice.

The Supreme Court had thus to remind the Centre and the states of their constitutional obligations towards the public when it observed on August 11 that food inflation was “terrible” due to emerging drought.

The RBI Governor other day also cautioned that drought would further pressure on food prices.

The Centre is still doing loud thinking and holding consultation with states on tackling drought, which would become grave in the coming months.

As it is, 10 state governments have already declared drought in their respective districts aggregating to 246. More districts would be declared drought-hit in the coming months. The total number of districts in the country is 626.

The Congress, as leader of the UPA, returned to power by making all sort of promises to the aam aadmi.

In its manifesto for Lok Sabha polls, Congress Party said: “The Indian National Congress pledges to enact a Right to Food law that guarantees access to sufficient food for all people, particularly the most vulnerable sections of society. The Indian National Congress pledges that every family living below the poverty line either in rural or urban areas will be entitled, by law, to 25 kgs of rice or wheat per month at Rs 3 per kg. Subsidised community kitchens will be set up in all cities for homeless people and migrants with the support of the Central government.”

It has not announced the timeframe to honour this and other major electoral promises.

At the conference of state chief secretaries on drought organised on August 8, Prime Minister Dr. Manmohan Singh declared: “In no case should we allow our citizens to go hungry.”

Speaking from the ramparts of Red Fort on the Independence Day, PM reiterated: “It is our ardent desire that not a single citizen of India should ever go hungry.”

Visit the website of Department of Food & Public Distribution (fcamin.nic.in) and search for information on hunger. One gets the link that reads as “Hunger Mapping: content awaited.”

UPA does not have to wait for results of yet another round of national sample survey or the next population census to know the number of hungry Indians and where they live.

It can take the requisite data from the international community. In an eye-popping report titled Comparison of Hunger Across States, issued in February 2009, International Food Policy Research Institute (IFPRI) said: “India has consistently ranked poorly on the Global Hunger Index.”

It continued: “The Global Hunger Index 2008 reveals India’s continued lacklustre performance at eradicating hunger; India ranks 66th out of the 88 developing countries and countries in transition for which the index has been calculated. It ranks slightly above Bangladesh and below all other South Asian nations. It also ranks below several countries in Sub-Saharan Africa, such as Cameroon, Kenya, Nigeria, and Sudan, even though per capita income in these Sub-Saharan African countries is much lower than in India.”

The report observed that almost all the states in India have hunger problem of varying degrees.

Earlier, United Nations Food and Agriculture Organization (FAO) pointed that India was home to 231 million undernourished people, the highest number in any country.

In its report titled The State of Food Insecurity in the World 2008, FAO estimated the total number of chronically hungry people at 832 million during 2003-05.

The number of hungry people in India must have increased many times due to curse of fast population growth among the poor and lack of any effective welfare scheme for the destitute and beggars.

To keep alive the hope of millions of hungry and under-nourished, PM constituted an Empowered Group of Ministers on Food Security on July 13. Its mandate includes revision of central issue price of wheat and rice, foodgrain procurement strategy, management of wheat and rice buffer stocks, review of export-import edible oils and their prices, increasing the government’s exposure (if required) in wheat futures/options at the global commodity exchange and proposed law on food security.

Here lies the contradiction in UPA’s governance stance. On the one hand, it is considering dabbling in speculative forward trade in wheat. It, on the other, is allowing export of wheat products.

On July 3, 2009, the government allowed traders to export 650,000 tonnes of wheat flour of different grades up to March 31, 2010. It only stopped export of wheat grain through three state trading agencies on 13th July.

The government has as yet not issued any notification suspending export of two million tonnes of non-basmati rice to African and other friendly countries that was allowed in March 2009.

This is evident from the notice dated August 12, issued by rice export scam-tainted PSU State Trading Corporation (STC). It said it had scrapped the expression of interest (EOI) for supply of non-basmati rice for export to Africa following a Delhi High Court verdict in response to a petition filed by a prospective rice supplier. It said: “The fresh EOI will be issued on receipt of fresh guidelines from Government of India.”

Last month, the government merely promised namesake probe into irregularities in such rice exports that have primarily benefitted private rice mills/suppliers. The Opposition parties demanded a joint parliamentary probe into this scam.

The lack of clarity on non-basmati rice exports appears alarming if one takes into observations made by Minister for Agriculture, Consumer Affairs, Food and Public Distribution at the conference of state food ministers on August 19.

He said rice production might be reduced by 10 million tonnes in the current kharif due to deficient and erratic rains. He also foresaw decline in production of oilseeds and sugarcane.

Pawar admitted anticipated decline in paddy output could put “pressure on availability and market price of rice”. Reiterating that the Centre had enough food stock, he said: “If required, government would not hesitate to undertake open market intervention.”

His complaint is that the states shy away from taking wheat and rice under open market sale for distribution to households. But what stops Pawar from asking FCI to sell wheat and rice directly in the market through auctions while ensuring that hoarders are kept on leash.

What stops the government from ordering state trading enterprises flooding of the markets with imported pulses and edible oils purchased at competitive prices? Why has the government not liberalised import of vegetables and fruits? And why has it not banned export of onions, groundnuts, etc.?

Drought calls for immediate review of the food export-import regime and waiver of import duties on all food products including milk powder. Such an interim measure should be rolled back next year to balance the conflicting interest of the consumer and the farmer.

What stops the government from slashing interest rates on short-term loans that the farmers need to buy agri-inputs? Why cannot the government defer loan repayments for all farmers by one year?

To encourage farmers to pay more attention to nurturing the paddy crop, the Centre should have promptly accepted their demand for advance announcement of procurement bonus. The announcement of bonus at the time of procurement would not result in additional production. It would merely ensure paddy procurement.

The government must realise that time is the essence of drought management. Belated announcements would not ease the hunger pangs of millions and the miseries of aam aadmi.

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