HUNGER AND FOOD INSECURITY

 GOVERNMENT'S ROLE TO ENSURE FOOD SECURITY

- VEDANT AND RAJVEER

MEASURES TAKEN BY GOVT. TO ENSURE FOOD SECURITY.

1. PUBLIC DISTRIBUTION SYSTEM

Food items purchased by the Food Corporation of India (FCI) are distributed among the poorer sections of the society through government controlled ration shops. This is called the Public Distribution System (PDS). This is the most important step taken by the Government of India to ensure food security. Over the years, the PDS policy has been revised to make it more efficient and targeted.

2. BUFFER STOCK.

Buffer stock is the stock of cereals procured by the Food Corporation of India (FCI), i.e. wheat and rice. FCI buys wheat and rice from farmers in states where there is surplus production. Purchased grain is stored in the grain store. This is done to distribute foodgrains at a lower price than the market price in the deficit areas and the poorer sections of the society.

3. TPDS (TARGETED PUBLIC DISTRIBUTION SYSTEM).

Government of India introduced Targeted Public Distribution System (TPDS) in June 1997 to adopt the principle of targeting the poor in all areas. It was for the first time that a differential price policy was adopted for poor and non-poor. 

4. FUNCTIONING OF TPD

The Government of India introduced the Targeted Public Distribution System (TPDS) in June 1997 to adopt the principle of targeting the poor in all sectors. It was the first time that a discriminatory price policy was adopted for the poor and non-poor. In 2000, two special schemes - Antyodaya Anna Yojana (AAY) and Annapurna Yojana (APS) - were launched for special target groups of poor and impoverished senior citizens respectively. The operation of these two schemes was connected to the existing network of PDS.

5. RPDS ( REVAMPED PUBLIC DISTRIBUTION SYSTEM)

Government of India, in 1992, introduced 'Revamped Public Distribution System (RPDS) in 1,700 blocks in the country. The target was to provide the benefits of PDS to remote and backward areas.

          ROLE OF PRICE RISE IN FOOD INSECURITY

The government increases prices of petroleum products, natural gas, coal, etc. The increase in railway freight fares leads to rise in the prices of other goods. The frequent increase in the minimum support price (MSP) for agricultural products is the result of price rise. The increase in the sales tax and other direct taxes leads to the price rise of respective goods.

A massive increase in the financial supply leads to price increases. When the total demand exceeds the total supply of goods and services, prices rise. When the supply of money is greater than the supply of goods, prices rise. As money increases, so does the demand for goods. Increasing government financing is an important factor in meeting unplanned costs, leading to price increases.

MEASUREMENT OF PRICE INDEX

To measure the price rise, two different indices are used in India.

1. Wholesale Price Index (WPI

2. Consumer Price Index (CPI)

WHY PRICES SHOULD BE CONTROLLED?

A moderate and fixed price increase of all commodities is a prerequisite for economic growth. 3% price hike is beneficial for the country. Manufacturers raise the prices of goods or services. The customer pays for the price increase. Additional benefits, such as increased salaries, bonuses and other benefits, reach workers involved in the production of goods or services. Thus, economic growth requires price increase along with stability.