NATIONAL FOOD SECURITY ACT (NFSA)

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 NATIONAL FOOD SECURITY ACT (NFSA)

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• What it is: The Government enacted the National Food Security Act (NFSA) in July, 2013 and gave legal entitlement to 67% of the population (75% in rural areas and 50% in urban areas) to receive highly subsidized foodgrains. It was one of the world’s largest scheme of its kind. It is a Central Sector scheme (CS).

1. Under NFSA, foodgrain is allocated @ 5 kg per person per month for priority households category and @ 35 kg per family per month for AAY families at a highly subsidized prices of Rs. 1/-, Rs. 2/- and Rs. 3/- per kg for nutri-cereals, wheat and rice respectively. 
2. Coverage under the Act is based on the population figures of Census, 2011. 
3. The Act is being implemented in all 36 States/UTs and covers about 81.35 crore persons. 
4. The annual allocation of foodgrain under National Food Security Act and Other Welfare Schemes is about 610 Lakh Metric Tons. (CGPTD).

• In 2020 and '21, the figures government records show for PDS offtake, procurement, warehouse stocks, and foodgrain exports indicate a new record. Huge farm produce and government initiatives enabled these. During the Covid-19 pandemic, “food” (rice and wheat) was channelled through the public distribution system (PDS) for the social safety net programme.
• PDS Offtake: Until 2019-20, offtake of grain from the Food Corporation of India’s (FCI) godowns averaged hardly 62 million tonnes (mt) per year. Mostly it comprised PDS rations under the National Food Security Act (NFSA) of 2013. This 2013 law (UPA regime) entitles 81.35 crore Indians to receive at least 5 kg of wheat or rice per month at Rs 2 and Rs 3 per kg, respectively. The annual foodgrain allocation under NFSA – which includes a higher 35-kg monthly ration for 2.37 crore “poorest of the poor” households under the Antyodaya Anna Yojana – works out to nearly 55 mt. In 2020, during the lockdown, the NDA government launched a new Pradhan Mantri Garib Kalyan Anna Yojana (PMGKAY). The NFSA beneficiaries were now provided an extra 5 kg grain per month free for April-November 2020, making it an additional allocation of over 32 MT. Offtake of rice and wheat from the central pool crossed an all-time-high of 93 MT in 2020-21, roughly 50% higher.  Much of this was due to PMGKAY, which, along with the Atmanirbhar Bharat Package (for returning migrant labourers) and other lockdown-related schemes, saw a total lifting of about 31.5 mt. PMGKAY has been re-launched in 2021 too, due to the second wave. To begin with, the government allocated the 5-kg extra free grain per month to NFSA beneficiaries only for May and June 2021. But on June 7, it announced its extension up to Diwali, i.e. November. 
• Features of NFSA:

1. It includes the Midday Meal Scheme, ICDS scheme, the PDS and also recognizes maternity entitlements.
2. The beneficiaries under Antyodaya Anna Yojana(AAY)will keep receiving the 35 kg/household/month at same rates.
3. NFSA aims to provide subsidized food grains to approximately 2/3rd of India's population under the TPDS (Targeted PDS), with uniform monthly entitlements.
4. NFSA converted the various existing food security schemes into legal entitlements (i.e.) from welfare based approach to rights based approach.
5. NFSA guarantees age appropriate meal, free of charge through local anganwadi for children up to 6 months and one free meal for children in age group 6-14 years in schools.
6. Every pregnant and lactating mother is entitled to a free meal at the local anganwadi as well as maternity benefits of Rs.6,000, in installments. These maternal benefits are not extended to Government employees, since other similar benefits are provided.
7. The identification of eligible households is left to state governments.There is no identified category of BPL under the NFSA. However, the Antyodaya Anna Yojana (AAY) beneficiaries are clearly identified. 
8. It also has provisions for food security allowance to entitled beneficiaries in case of non-supply of entitled foodgrains/meals.
9. Massive food procurement is done pan-India by FCI (Food Corporation of India) and all state food agencies, and the PDS (public distribution system) is supplied with those foodgrains.

• Excess stock: In order to liquidate the excess stock of foodgrain in the Central Pool, Government disposes excess stock through Open Market Sale Scheme (OMSS)to consumers, traders and state govts. It also does exports on Government-to-Government basis, as export from public stockholding is not compliant to WTO norms. (subsidies cannot exceed 10% of total value of production). 100 lakh metric tons of wheat and 50 lakh metric tons of rice has been set as target for sale under OMSS (D) during 2019-20.
• Prices of foodgrains under NFSA: Rs.3 per kg for rice, Rs.2 per kg for wheat and Re.1 per kg for coarse grains – were valid for three years 2013-14.These were extended upto June, 2018, and then June 2019.
• Foodgrain transportation: About 40 million tonnes are transported by FCI across India annually. It is by rail, road, sea, coastal and riverine systems. 
• Subsidy: Total food subsidy released in 2018-19 was Rs.1.71 lakh crores. The amount kept growing till 2020-21, when the govt. cleared entire backlog of FCI borrowings in one shot. The fiscal deficit shot up to 9.5% in FY 2020-21.
• One Nation One Ration Card scheme: Migrant labourers and workers faced problems when they moved to other states. From 2019 the central govt. brought the “One Nation, One Ration Card” system, to be fully functional from 2020. This Aadhaar-based system will allow Indian citizens eligible for PDS to access central benefits anywhere in India, not just in their home states. State benefits are restricted to states of domicile.
• TYPES OF RATION CARDS
• Before NFSA: Prior to NFSA 2013, there were three types of ration cards issued by State Govts. – APL (Above Poverty Line), BPL (Below Poverty Line) and Antyodaya (AAY) ration cards. They were colour-coded.

1. Above Poverty Line (APL) ration cards were issued to households living above the poverty line (as estimated by the Planning Commission). These received 15 kilogram of food grain (based on availability).
2. Below Poverty Line (BPL) ration cards were issued to households living below the poverty line. These received 25-35 kilograms of food grain.
3. Antyodaya (AAY) ration cards were issued to "poorest of poor" households. These households received 35 kilograms of food grain.

• After NFSA:

1. The APL group and BPL group have been re-classified into two categories - Non-Priority(NPHH)and Priority (PHH). Thus NFSA prioritizes a household's needs considering income and other socioeconomic imbalances.
2. Priority and Non-Priority : The households fulfilling the eligibility criteria are priority households for inclusion in the NFSA and their ration card is the Priority Household Ration Card. Those who are ineligible be listed are Non-priority households and their ration cards are Non-priority Household Ration card.
3. Total Five categories : Priority (PHH), Antyodaya (AAY), Annapoorna Yojana (AY), Non-Priority (NPHH) andState Priority (SPHH).

• FIVE TYPES OF RATION CARDS IN N.F.S.A.
• Priority Household PHH – Most of ration cards are in this category. Every person is entitled to receive five  kg of food-grains per month at subsidized prices from the ration shops not exceeding Rupees 3 (Three) per kg of rice, Rupees 2 (Two) per kg of wheat and Rupee 1 (One) per kg for coarse grains. To be included, there are set inclusion criteria like (i) Household without shelter, (ii) Household with destitute who is living on alms, (iii) All households of Primitive Tribal Groups, (iv) Household having a widow pension holder, if not otherwise ineligible as per the nine exclusion criteria, (v) A person with disabilities of 40% or more, (vi) Any transgender person etc. There are exclusion criteria as well, like (i) Household owning motorized a four wheeler / a heavy vehicle / a trawler / motor boats (two or more), (ii) Household owning mechanized agricultural equipment such as Tractors or Harvesters, (iii) Household with any member who is a regular employee - gazetted or non-gazetted - of Central Government, State Government, Public Sector Undertakings, Government aided autonomous bodies and local bodies, (iv) Household with any member in the family earning more than Rs.10,000/- per month in the rural and Rs.15,000/- per month for urban areas, (v) Household paying Income Tax or Professional Tax, (vi) Household with three or more rooms with pucca walls and pucca roof, etc. In 2019-20, there was a total of 70.52 cr people covered in PHH.
• Antyodaya Households AAY – It is for the poorest of poor, who may be  unable to get two square meals a day on a sustained basis throughout the year. They cannot buy food grains round the year even at BPL rates. Entitlements are at 35 kg of foodgrain per household per month where wheat and rice are issued at the scale of 15 kg and 20 kg per family per month at the rate of Rs. 2 and Rs. 3 per kg respectively. The AAY scheme was introduced on 25th December, 2000, and it a commitment to ensure security for all and a hunger free India. Inclusion criteria are (i) very poor people with no stable income at all, (ii) Rickshaw pullers, Coolies, Daily Labourers, (iii) Landless agriculture labourers, (iv) Marginal farmers, (v) Rural artisans/craftsmen such as potters, tanners, weavers, blacksmiths, carpenters, slum dwellers, and persons earning their livelihood on daily basis in the informal sector like porters, coolies, rickshaw pullers, hand cart pullers, fruit and flower sellers, snake charmers, rag pickers, cobblers, destitute and other similar categories in both rural and urban areas, (vi) Households headed by widows or terminally ill persons / disabled persons / persons aged 60 years or more with no assured means of subsistence or societal support, (vii) Widows or terminally ill persons or disabled persons or persons aged 60 years or more or single women or single men with no family or societal support or assured means of subsistence, (viii) All primitive tribal households.In 2019-20, there was a total of 9.12 cr people (2.38 cr HH) scovered in AAY.
• Annapurna Yojana (AY) – It is a special ration card issued only to the elderly poor people above 65 years. They are entitled for 10kgs of food grain on the monthly basis.
• State Priority Ration Cards (SPHH) – Issued only to a member who needs treatment due to serious illness but comes under non-priority household ration card. State priority card holder is not eligible for any other rationing articles from ration shops. State govt. governs this matter.
• Non-Priority Households (NPHH) – The households remaining after all priority list is prepared will be Non-Priority category. These are are ineligible to get subsidised food grains. According to NFSA, 25% of the rural population and 50% of urban population will be out from receiving subsidized foodgrains under Targeted Public Distribution System (TPDS). They will get ration cards but no subsidized foodgrains.
• ONE NATION ONE RATION CARD
• What it is: The ‘One Nation One Ration Card’ scheme will allow portability of food security benefits. 
• Operational details: It was to be available across India from July 1, 2020. The pandemic delayed its rollout.

1. So, a poor migrant worker will be able to buy subsidised rice and wheat from any ration shop in the country, so long as their ration cards are linked to Aadhaar. 
2. At present, to avail of the National Food Security Act benefits (NFSA), they need not link their Aadhar with PDS system.
3. All States were given one more year to use point of sale (PoS) machines in the ration shops and implement the scheme, as per Food Ministry.
4. By August 2019, 77% % of the ration shops across the country have PoS machines and more than 85% of people covered under the National Food Security Act (NFSA) had their cards linked to Aadhaar.

• Ten States: Andhra Pradesh, Gujarat, Haryana, Jharkhand, Karnataka, Kerala, Maharashtra, Rajasthan, Telangana and Tripura already offered this portability. The pan-India target was to be latest by June 30, 2020. It got delayed.
• Migrants: They would only be eligible for the subsidies supported by the Centre, which include rice sold at Rs. 3/kg and wheat at Rs. 2/kg. Even if a beneficiary moved to a State where grains were given for free, that person would not be able to access those benefits, as they were funded by the State exchequer.
• The Aadhar seeding can be done in the home state too, and is not necessary to do it at/in the new State.
• This scheme will ensure that no poor person is deprived of subsidised grains. State governments have to fast track its implementation, and make it work latest by June 30, 2020. 
• In a bid to reduce nutrition deficiencies among beneficiaries, the Centre would roll out a pilot project in 15 districts to fortify rice grains with iron, folic acid, Vitamin A and Vitamin B12. The first fortified grains were available in ration shops from end 2019. By 2021, the Centre was pushing all states to ensure proper implementation.

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