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Trending: Call for Papers Volume 5 | Issue 4: International Journal of Advanced Legal Research [ISSN: 2582-7340]

A CASE FOR FOOD SUBSIDIES: AN INVESTMENT OR A WASTE – Saurabh Singh

Introduction

The role of the government as the provider of financial help to economically challenged groups, or the “subsidy,” the correct way to call it, is the most important factor in the provision of low-cost, thus reachable, necessities of life like food. For example, food subsidies have been designed to lower food prices for the low-income population by providing assistance to consumers, farmers, and other actors in the food chain. Among others, these subsidies may appear in the form of price support systems, subsidised food delivery programs, or even direct money transfers. They are particularly indispensable in the fight against hunger and malnutrition, among others, in countries such as India, specifically among communities that are at the edges of society. Various schemes and programs within the National Food Security Act (NFSA) ensure millions of people access the necessary nutrition by getting wheat and rice at much lower prices.

In 2022–2023, the food subsidy outlay came to Rs 2.72 lakh crore.[1] Finance Minister Nirmala Sitharaman mentioned in her Budget Speech that 80 crore people now had free rations, removing whatever concerns they may have had about food. “Minimum support prices for the produce of ‘Annadata’ are periodically increased appropriately,” she said.[2]

The aforementioned data showcases the significant financial resources allocated to food security and the Indian government’s resolve to combat poverty and hunger. Millions of disadvantaged households now have access to free or discounted food grains because of the National Food Security Act, an important government legislation, and initiatives like the Pradhan Mantri Garib Kalyan Anna Yojana (PMGKAY)[3]. The state’s aim and objective to uphold the right to food as a component of the right to life under Article 21 is reflected in these investments. In the decision of PUCL v. Union of India[4], the Indian Supreme Court declared that the right to food comprises part of the fundamental right to life under Article 21 of the Indian Constitution.

In discussing these investments towards food subsidies, the magnitude of these investment also calls into question its efficiency and financial viability.Notwithstanding the admirable goals, issues like corruption, leaks, and ineffective administration lessen the efficacy of these subsidies. Discussions over the long-term economic viability of the subsidies have been triggered by the reallocation of funds from prospective development projects. On the plus side, particularly in times of crisis like the COVID-19 epidemic, the subsidies have been crucial in lowering severe poverty, preventing hunger, and stabilising food prices. Therefore, even if significant financial resources are allocated to food security, their prudent use and strong execution are essential for optimising both social and economic benefits. There comes the discussion and the question of analysis of whether food subsidy is an investment or a waste.

The Legislation: The National Food Security Act, 2013

Section 3 of the Act[5] provides legal entitlement to subsidized food grains for two-thirds of the population—75% of the rural and 50% of the urban population. It reads – Right to Food Entitlement and ensures universal access to food grains, prioritizing the deprived sections, but challenges remain in accurate beneficiary identification and takes note of the exclusion errors.

Section 4 takes into consideration the nutritional requirements of women in their pregnancy phase and that of lactating mothers.[6]The provision warrants their eligibility for freely available meals that provide their bodies with adequate nutrition and nourishment during pregnancy and up to six months post-delivery, which are provided by way of the Integrated Child Development Services (ICDS) or other schemes of a similar nature. Additionally, women in the aforesaid category are eligible to receive a maternity benefit of ₹6,000 in instalments to support their dietary and healthcare expenses during this sensitive period. The aim of the provision is to improve maternal health and reduce malnutrition,which ultimately ensures that the mother and her child receive adequate care for better health.

Section 5 of the Act[7] lays provision for children falling within the age group of 6 months to 14 years that they have access to free meals that provide them with nutrition, thereby considering the requirements of their bodies for proper growth and developmental. By way of the Integrated Child Development Services (ICDS), children under the age of six receive age-appropriate meals and healthcare support. For children in the age group of 6 to 14 years, the provision of free mid-day meals at schools plays a notable role in remedying the concerns of their school attendance, reduces dropout rates, and improves learning and education among these children. The provision helps in combatting malnutrition and hunger that these children might suffer as a result of poverty, family status, or any such similar cause. The provision reaffirms that the children, so young, receive proper nutrition during their formative years. It links education and nutrition, and ultimately serves as a powerful weapon that breaks the cycle of intergenerational poverty and fosters long-term social and economic development.

[1] The Economic Times News, Budget 2024: Food subsidy bill at Rs 2.05 trillion for FY25, available at:https://economictimes.indiatimes.com/news/economy/finance/budget-2024-food-subsidy-bill-at-rs-2-05-trillion-for-fy25/articleshow/107321972.cms?utm_source=chatgpt.com.

[2] The Economic TimesNews, Budget 2024: Food subsidy bill at Rs 2.05 trillion for FY25, available at:https://economictimes.indiatimes.com/news/economy/finance/budget-2024-food-subsidy-bill-at-rs-2-05-trillion-for-fy25/articleshow/107321972.cms?utm_source=chatgpt.com.

[3] Government of India; Department of Food and Public Distribution; Ministry of Consumer Affairs, Food and Public Distribution, Pradhan Mantri Garib Kalyan Anna Yojana (PMGKAY), available at:https://dfpd.gov.in/Home/ContentManagement?Url=pmgka.html&ManuId=3&language=1.

[4]PUCL v. Union of India, W.P. (civil) 196 of 2001.

[5] S. 3, The National Food Security Act, 2013, No. 20 of 2013.

[6] S. 4, The National Food Security Act, 2013, No. 20 of 2013.

[7] S. 5, The National Food Security Act, 2013, No. 20 of 2013.