DR.

RAM MANOHAR LOHIYA

NATIONAL LAW UNIVERSITY, LUCKNOW

Law And Agriculture

FINAL DRAFT

On

National Food Security Act with context of global economy

SUBMITTED TO: SUBMITTED BY:

Dr. Bhanu Pratap Singh Akshay Yadav

Assistant Professor (Law) Enroll. No. – 170101019

RMLNLU VIIIth Semester

Acknowledgement

I would like to acknowledge my teacher Dr. Bhanu Pratap Singh for allowing me to take this
important area in Law and Agriculture as my project and also for guiding my way through it.
I am also thankful to him for encouraging me to make this project with great zeal and
enthusiasm.

I am also thankful to the library staff and the college, which has provided me with such a
good and useful material online, which has helped me throughout the making of this project.

I would also like to present my heartfelt gratitude to my friends and classmates for their
views and support throughout the time.

Akshay Yadav

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Introduction

Neither in the history of human survival nor anywhere in this universe has any thought
taken very tangible figure in the form of law. To deal with the starvation of lower class of
Indians the National Food Security Bill which came through the ordinance is an implosives
economic factor. The Food Security Bill cannot be passed just through the discussion in
parliament; it is passed through the ordinance. It has also been destined by the politician as
a trick.
The purpose of National Food Security Act was to give nutritional and food protection to the
people. Through Food Security Bill people got right to obtain better quantity of food in very
less price than compared to earlier years. The bill mostly focuses on the suppressed class of
people which is the backward class people, women and children. After this bill has been
passed if the government failed in supplying the food people will get Food Security
Allowance.
India as a nation has make huge blunder on financial and monetary aspect from nearly 67
years after the India became as an independent nation, but passage of Food Security Bill
must be the major till now. If the common people ignore the depressing fact of National
Food Security Act it is a remarkable move of Indian government because for the first time it
has taken step towards ensuring the dietary of Indian people. UPA government got huge
success as the bill was passed in the Rajya Sabha though a voice note. After various
amendments Food Security Bill was passed by the Lok Sabha on 26th August 2013. The main
purpose of this act was to provide each and every person 5 kg of food materials per month
and 35 kg per house to antodaya households or eligible households.

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FOOD SECURITY BILL, 2013

It is an act to give protection regarding dietary and food to every common people by
providing them good quantity and quality of food at much lesser price than the previous
years so that people can live their life with comfort and without any tension of shortage of
food. It covers almost two third of the Indian population.1 in this act, the context
otherwise requires:
• “Anganwadi” which is an improvement centre for the children’s growth and
development which is set up under Integrated Child Development Services Scheme of
the government2.
• “Central pool” which basically is the collection of food materials which is:-
i. Controlled by the governing body by supporting minimum price system policy or by
lessen the price of the basic food grains. ii.By introducing “Public Distribution System” and
various other schemes for the welfare of the society and the common people.
• “Eligible household” means the household which will be covered or comes under the
election criteria for getting the profit from Food Security Act 2013. Antyodaya Anna
Yojna is referred in Section 3(1) “Fair price shops which means only that shop can
distribute commodities which has been given license from the government and which
com under Section 3 of Indian Commodities Act, 1955 which is only for the person
who hold ration card
• Food security allowance means that if the government fails to give the promised
quantity of food grains then that individual is entitled to get Food Security Allowance
which comes under Section 8.
• “Minimum Support Price” which means that guaranteed price said by the governing
body at which all the materials of food are being created.
• “Other Welfare Schemes” was also introduced by the Indian government for the
welfare of the society. “Ration Card” means that the card which is being issued by
the government to all the required person for the buying important food grains at very
less price as compared to the earlier years.

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 ENTITLEMENTS OF FOOD SECURITY ACT

Entitlements:
1. Public Distribution System (PDS) :
It entitle that every individual should get 5 kg of commodities every month and
Antyodaya household or eligible household to 35 kg per house per month. The
combined ratio of Antyodaya and Priority household jointly covers 75%n of village
level population and 50% of town level population. The price of different food grain
can be checked or revised after every 3 years.

2. Children Entitlements:
Children’s coming between age group 6 months to 6 years is provided free meals and
care through the government organization named “ANGANWADI”. For children aged
between 6-14 years there is a scheme named “MID DAY MEAL” which provide them
free education and free mid day meals all working days.

3. Entitlements of Pregnant Women:

Every pregnant women s entitled to get free meal during pregnancy and even after the 6
month of baby from Anganwadi and also maternity relief of Rs. 6000.

• Identification Of Eligible Household:

The governing body decides the criteria of eligible household; it is not decided by the bill.
It differs from state to state and s is decided on the basis of census record.1

• Food Commissions:
State Food Commission has been formed though this bill only. The main duty of this
commission is to look over the execution of the act and to give suggestion to the governing
body at state level regarding the act.

• Transparency And Grievance Redressal:

1
eac.gov.in/reports/rep_NFSB.pdf

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 This act provides two level systems to deal with grievance and that is District Grievance
Redressal Officer (DGRO) and State Food Commission. These two offices is to deal with
the problem of the people and to look after it.

• Other Provisions:
i. PDS reforms:
It looks after the distribution of the commodities and it ensures the lucidity of the bill. It
also includes or talks about the criteria on which the ration card will be distributed.

ii. Obligation of government and local authorities:

The main obligation is to give the governing body adequate amount of food material
and to ensure safety to them. Local governing bodies such as panchayats are there to
look over the working of the bill or the enactment of the bill.2

 Schedules:
The Food security Bill deals with four schedules in which schedule I deals with creating
cost for the PDS. Schedule II covers the quality of goods to be delivered to the student in
mid day meal. Schedule III covers various lists related to advancement of security of food.
And schedule IV deals with lowest food material allotment to each state.

2
www.tehelka.com/exclusive-summary-of-the-national-food-security-
bill 5 ww.fao.org/worldfoodsituation/foodpricesindex/en/.

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Impact Of National Food Security Act On International Trade And
Business

The entire universe is working to encourage nutritional security among the people. To gain
millennium development goals the year 2014 was very important year. This global topic of
promoting nutritional security among the people cannot be discussed or promoted only on the
basis of past experiences; it has to focus on future prospective also.5 Earlier there were about
1 billion people dying from starvation and hunger which has now been reduced to 842
million in the year 2013 which has been declared by FAO. South Asia and Africa South
contains the most number of people dying from starvation which s about two third of the
world’s hungry people.

After the 2013 Food Security Bill was passed the concentration shifted at the global level
where India have to persuade the negotiators especially U.S.A, at Word Trade Organization
meeting in Bali and have to convince them that trade will not be affected due to this bill.
India met WTO where India demanded amendment regarding Agreement on Agriculture
(AOA). After this agreement limits India and other developing nations from exceeding
“market distorting subsidies” which it provide to the famer, not more than 10% of the total
manufacture which is also known as de minimis support. About Rs.1.2 lakh is spent on “food
subsidy” by India on annual basis. Due to lack of rain and poor monsoon the production of
crops reduced from 259 million to 250 million. Due to heavy dependency on monsoon the
international trade activities got affected and agricultural relations also got affected.

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Sustainable Development Goals

Millenium Development Goals (MDG) has worked with the International community to
work on the common issues and has common set of aim to achieve. Many political
discourses has been influenced by it to set new development standards. MDG has already
improved various factors such as improved quality of drinking water, providing subsidy
and has highlighted its position at global level. But still MDG has not managed to eradicate
poverty and hunger and to provide basic necessity which is food, healthcare and
education to the children to the common people. Nowadays attention has been shifted
towards the promotion of sustainable development goals (SDGs) which act as a model of
future development and its foundation was structured by UN conference on Sustainable
Development in Reo De Jenerio. Sustainable Development in agricultural productivity can
be improved by an approach known as agricultural intensification. To increase the
productivity of agricultural materials new inventions are required to made to develop
sustainable development which will indirectly increase the agricultural productivity. Policy
environment and large scale production will develop the agricultural productivity and will
encourage th farmer to produce more and more.

Economic Implication Of National Food Security Act

Around 22% of the India’s total population is malnourished despite the fact that India is
highly developed in term of economic growth. The report given by the National Family
Health Survey 2005-06 highlights that 40.4% student are underweight, 78.9% of the
children between the age group 6-35 months are suffering from anemic and women aged
between 15-49 have below normal body mass index. So the National Food Security Bill is
till date considered as the best step taken by the government.
It is believed that f there will be better economic condition in the country or rather if
economic growth of the country will be high then indirectly the health of the country will
also increase. National Food Security Bill (NFSB) which is proposed by NAC have great
impact on economic development of the country.
The economic implications of the National Food Security Bill, which has nowadays become
law, are going to be vast. This theory points out that amount of money which will be
required in starting or running any institution and the amount of money needed to come
out from any political conflicts is equally important to the cost of food subsidy.
The food subsidy cost of implementing the National Food Security Act in total around
Rs.124502 crore
for the year 2013-14. This bill covers around 75% of the rural population and 50% of the
urban population.

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India’s Tryst With WTO With Special Reference To Agricultural Subsidies
Agreement on Agriculture:

To create fare and market oriented agricultural trading system during extensive progressive
decline in agricultural sustain and protection which results in correcting and imposing
boundaries in world agricultural markets. Three areas of agriculture and trade policies are
covered in the deal signed by WTO on agreement on agriculture:

i. Market Access:

Market Access consists or focus on providing opportunities to the people regarding

agriculture and also about tariff reduction and tarrificaton. Tarrification means that all non
tarrif barrier need to be converted into equitable tariff and non tariff barrier consists of
quotas, import and export license, and minimum import prices etc. In case of developed
countries 36% over 6 years normal tariff is to be reduced and in case of developing nations
the average is 24% over 10 years
ii. Domestic Support:

The main purpose or objective of domestic support is to identify the technique or tools
which will be profitable to the farmers. Aggregate measurement of support (AMS) is the
mechanism during which all domestic support is quantified. The entire protection given in
1986-88 calculated by AMS was to be abridged by 20% in developed counties for the sake of
domestic support policies. Reduction Commitments put emphasis on the entire level not on
any individual supplies3. It basically means the quantity of subsidy granted to the nation
related to agricultural products. For the developing countries there is a stipulation named as
Special and Differential Treatment. This provisions s to supply goods or subsidies at the
minimum possible price.

iii. Export Subsiding:

Reduction committee applies various kinds of subsidies on coming under agreement related
to agriculture. From the year 1986 the developed nations were asked to decrease their
export subsidy rate by 36% and volume by 21% in 6 years and for the developing nations it is
24% and 14% respectively.4

3
http://commerce.nic.in/wtojun2k_2.htm
4
http://commerce.nic.in/writereaddata/publications/wto-may.pdf

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Issues Affecting Indian Agriculture In Context Of Global Agriculture
Subsidy In India

Subsidies are the main factor in terms of the development of agriculture. If subsidies were
withdrawn then it I assumed that world agriculture would also be distorted. At the present
international price India cannot import food grains as it is said that if a lager buyer like India
would enter then the price would automatically be hiked up. Per capita consumption of
India is far below the other countries; so there is a urgent necessity to improve it. In
developed countries agricultural productivity does not contribute more than 10% in the
GDP; so due to this less number of people are employed in the agricultural sector in the
developed countries. In India subsidies are evaluated totally from financial angle. There is a
view of New economic Policy that many of the old subsidies are now neither financially
suitable nor economically justifiable so they need to be discontinued. In India agriculture
represents the culture of the nation; agriculture here is much more than the matter of
national security.
The main reason behind the difference in perception or thinking regarding subsidy regime
between the country like India and other developed nation is the lack of knowledge of
importance of agriculture among the people. India’s per capita food consumption is
considered a lowest in the world so it is highly needed to increase the food consumption.
Governor fixes MSP which rate is higher than the normal market price. Du to such high rate
food became expensive and out of the reach of common people. Another reason behind
poor thinking of subsidy regime is ignorance of size of the subsidy regime. Despite India
being one of the largest production of food still approx 26% of India’s population is below
poverty line that is around 260-300 million people are below poverty line and did not get
proper consumption of food. So Public Distribution System (PDS) needs to distribute food
among the people. Farmers are suppressed in the nation and they did not get the correct
price for their good and due to this around 50,000 farmers had committed suicide. Another
issue raised is that there is a misconception that there are many countries which can import
food grains at very low price which means that the nation have to lower the subsidy price
which indirectly effects the farmer and due to this only agricultural development also
hampers.

Impact Of Subsidy Regime

There is lots of misconception among the people regarding agriculture and subsidy regime
due to lack of information about it which later on results as conflict, debate among the
people and lack of development in agricultural sector. And due to this only government is
not able solve various problems regarding subsidy regime. India being a victim of
misconception, the government is not even able to understand the reason behind downfall
of agricultural sector. Quantum of subsidy regime given to the Indian farmer by the
government s comparatively very low as compared to the other developed nations. This

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issue is affecting the interest of agricultural sector which is directly affecting 600 million
Indian people and which later on indirectly harm the national interest of Food Security Bill.
In the other economy sector 7-8% growth rate has been recorded but in the agricultural
sector from past 3 years very less growth rate has been recorded. Due to this negative
growth rate in past years two third of the population which depends on agriculture have not
been beneficiary5. While the other sectors has improved and their conditions became much
better where as in agricultural sector due to subsidy regime the condition has deterioted.
The main reason behind the declining condition of agricultural sector is less productivity and
this is because the farmers of India consume less fertilizer as compared to the other
nations67.

Impact on Indian economy on allowing 100%FDI:

Allowing 100% FDI in Indian agriculture is a great issue of concern and whether government
should allow it or not or any type of investment is controversial. Indian economy has been
growing over last two decades through a decent rate. However the agricultural sector is still
a growing sector in India and with the policy of moving 100%FDI in agricultural sector the
government is trying to boost up the investments in this sector. On the other hand farmers
are disappointed and distressed with this move of the government and in want of another
way to fix this problem. The main concern of the farmers are that they are not able to sold
out the domestic product to the world market , the profit margin for the farmers is very less,
total failure from the government to provide farmers with minimum support price system.
With this allowance government is trying to interact the foreign investors with Indian
market for the welfare of Indian farmers. Government wants to allow proper flow of income
to the rural parts of the country in a manner to promote the weaker sections of the society
residing in the villages and whose occupation is agriculture. It can safely be concluded from
the above that allowing 100% FDI will not increase the GDP of the country but also improve
the conditions of farmer and help in interacting Indian agriculture sector with the world
economy. FDI in agriculture should be dealt precautious because it has a direct impact on
the large number of population8.

5
www.ictsd.org/bridges-news/.../indian-farm-subsidy-regime-sees-growth
6
www.merinews.com/article/yet...subsidy-regindian-farm-subsidy-regime-sees-growth
7
me/15897606.shtml
8
www.ictsd.org/.../success-in-bali-sparks-questions-over-doha-wto-future

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Economic implications of National Food Security Act, 2013 and its
international trade impacts:

After the introduction of Food Security Act, the annual price on consumption of food was
very low as compared to the earlier years which itself reflects the success of National Food
Security Act. Global food price indicators do not constantly reflect country-level realities. For
illustration, in China and India, where a huge share of the world’s deprived and
malnourished people live, food prices rose considerably in 2013, particularly for high-
nutrient foods such as vegetables.9If government provides appropriate resources and
ammend proper policies and laws then by 2025 starvation and malnutrition can be
completely eradicated from India. India shows “income policy” approach rather than “price
policy” approach which signifies equality among the people. Despite the fact that India is
among the top ten wheat producing countries still India does not have a powerful presence
in international trade market. There is a huge financial burden on India as it has to supply
food gains to almost 1.2 billion people. For the enhancement of production, maintaining
market infrastructure, observation of movement additional expenditure is needed to
support the welfare schemes. In the recent years food subsidy has increased four times
from Rs.17,494 crore in 2011-12 to Rs.72,823 crore in 2011-12 at current prices.

Impact Of 2013 Act On Exports And Measures By Which Supply Will

Meet The Demand:

Under Targeted Public Distribution System every person belonging to priority household and
general household shall receive food grains promised by Government, for priority household
it is 7 kg food grains per person per month and for general household it is 3 kg food grains
per person per month. In all the distribution total cost appears is approx Rupees seventy
nine thousand eight hundred crore. 10 India has spent Rs. 1.2 lakh approximately on food
subsidy. It was published that in the coming years India will start exporting food inflation to
the poor countries like Bangladesh and Indonesia. As the income security of the small
farmers is in danger India will have to preserve its right to subsidies.

“Price policies” aims at equity and is has subsidized food such as rice and wheat as well as
agricultural inputs such as fertilizers so the poor people can easily afford it. But it does not
fully succeeded in achieving equality as it led to high distortions in grain markets and led to
huge price in handling food grains which have resulted in large efficiency losses. Various
criticism also aroused on subsidies as subsidies are open to corruption and mismanagement.
Impacts are:

9
http://www.ifpri.org/gfpr/2013/food-policy-201
10
http://online.wsj.com/public/resources/documents/CACPReport.pdf

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 1. Increased power to BPL families: After implementation of Food Security Bill family
below poverty line used to get food gains at very lower price as compared to the
earlier years.
2. Better intake of nutrition: The Bill enables to save money as the food grains were at
very less price, o that saved money was used in providing better health care.
3. Special relief to women and children: After the enactment of the Bill children use to
get free meals from services like mid day meal and anganwadi and pregnant women
also get health care facilities.

Comparison Between Livelihood Security And Food Security Legislation:

Food security: It is a quality of the human being to make sufficient food on day to day
basis. Lack of food grains is the primary reason behind starvation. Food security basically
is when all the people have required amount of assets to produce food, economically
sufficient to manufacture food. It has basically three components:
a. Food availability: It means the physical appearance of the food. It is when there is
required quantity of food grains produced with the domestic methods or food stocks
consistently available.
b. Food access: Access means having required amount of resources to produce required
amount of food grains for a nutritious diet. It basically means human being having
adequate amount of money with them for the consumption of nutritious food.
c. Food utilization: Utilization means the actual amount of food consumed by human
being. It means that an individual having proper knowledge about the storage of food
facility, protection off women and children. Livelihood Security: Livelihood basically
means having required means of living, enhance its assets, provide livelihood
opportunities to itself and as well as for the next generation. The main focus of
livelihood security is on household matters such as if the individual have potential to
educate children, providing nutritious food grains to the people. Two primary
components are:
a. Livelihood means consisting of required assets to live properly.
b. Livelihood will then be said as sustainable when it can recove from shock and surprise.
Livelihood securities are based on future prospects where as food security does not.
For successful food security there is a need of livelihood security.

Right to food comes under Article 25 of Human Declaration of Human Right which depicts
minimum standard of living.11 Right to food is said to be complete when every human being
in a community have economic access at all time for adequate amount of nutritious food.

REFERENCES
11
http://www.ncbi.nlm.nih.gov/pmc/articles/PMC2696644/

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http://online.wsj.com/public/resources/documents/CACPReport.pdf
http://online.wsj.com/public/resources/documents/CACPReport.pdf
http://www.ncbi.nlm.nih.gov/pmc/articles/PMC2696644/
http://www.indialawjournal.com/volume6/issue_1/article10.html
http://www.planningcommission.nic.in/data/datatable/0904/comp_data0904.pdf

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