GS 3 · 2013Economy10 Marks

Q25.The Food Security Bill is expected to eliminate hunger and malnutrition in India. Critically discuss various apprehensions in its effective implementation along with the concerns it has generated in the WTO.

Directive: Critically discuss10 marks

Introduction

The National Food Security Act (NFSA), 2013, aims to provide legal entitlement to food grains, addressing hunger and malnutrition by ensuring access to affordable, quality food.

Apprehensions in Effective Implementation

  • Fiscal Burden: The massive subsidy program poses a significant and potentially unsustainable fiscal strain.
  • PDS Challenges: Leakage, diversion, and corruption within the Public Distribution System undermine effective delivery.
  • Beneficiary Identification: Exclusion/inclusion errors, affecting vulnerable populations and the urban-rural divide, remain critical.
  • Agricultural Impact: Distorted procurement and MSP can disincentivize crop diversification, affecting market dynamics.

Concerns in the WTO

  • Subsidy Limits: India's food subsidies (MSP, PDS) often exceed 'de minimis' limits, classifying them as trade-distorting 'Amber Box' subsidies.
  • Peace Clause Reliance: The 'Peace Clause' offers temporary immunity but is conditional and not a permanent solution, requiring adherence to specific criteria.

Conclusion

NFSA is a landmark step, but its success requires robust PDS reforms, accurate beneficiary targeting, and a sustainable fiscal strategy, while navigating complex international trade obligations.

147 words · target ~150