Subsidy on Food
- The subsidies on food The Targeted Public Distribution System ensures the agricultural production of the targeted beneficiaries by providing a reduced rate of cereal aid (TPDS). It helps to protect them from the effects of consumer price to price movements. While agricultural support expenses have increased massively, the percentage of people living in poverty has reduced.
- Implementation of Food subsidy is coordinated by the Ministry of Consumer Affairs, Food, and Public Distribution. The Departments of this Ministry are- the Competition And consumer protection Department and the Department of Food, and Public Distribution.
- The Department of Food and Public Distribution expects to receive 98% of the Ministry’s budget.
- Consequently, some components of the food subsidy are often used to pay for the cost of replenishing the food subsidy on the food reserve fund.
A. Subsidies on Food Aid in the Reduction of Poverty in India:
- India’s economic growth has achieved gradual progress in eliminating unemployment and maintaining food availability for the poor, and it continues to be a priority for the government.
- The Indian government has many different projects that have been particularly intended to help those living in extreme poverty.
- Government subsidies are the essential source of capital for these kinds of initiatives, among the subsidies, the subsidiary government programs would be a significant contributing factor.
Subsidiary government programs, The Public Distribution System (PDS) is a method that allocates goods to the community Food Subsidies, Administered through the direct public distribution system, account for a significant share of public spending on food security. Mid-day Meal Program “Integrated Child Development Services” (ICDSS) program is a service that assists students.
To achieve food and nutrition security in India, the agricultural management solution and food pricing policy comprise three important roles:
- Purchase at supportive and considerable prices so you can pay easily.
- The conservation of excess inventory, as well as the required stuff to maintain easily.
- The Public Distribution System (PDS) is a system that distributes public goods so they could help people in every aspect.
B. Laws on Food Security
The National Food Security Act, 2013, was adopted by the Indian Parliament in 2013 to ensure that every person in the state has access to food. This Act, also known as the Right to Food Act, aims to give subsidized food grains to around two-thirds population of India.
What is Food Subsidy?
The food subsidy benefits both consumers and producers. It is used to acquire cereals from producers at quite a rate that makes farming profitable, and afterwards sell the grain to underprivileged households at a lesser price, or for free in some situations. Food security includes three major elements: Food availability, Food accessibility, and Food assimilation. Management and some other operational charges contribute to a percentage of such subsidies.
Subsidiary government programs aim to increase the real purchasing power of all or select sectors of consumers, minimize caloric and nutrient inadequacies in low population density, minimize the production of urban revenues and achieve intellectual growth.
The funding goes to the Food Corporation of India, which is the government tool used for the procurement and distribution of wheat and rice under the TPDS and other social programs, as well as keeping a sufficient inventory of grain production for food and nutrition security as a buffer stock.
Food subsidies are a vital safety net that protects farmers from poor market prices. rates while still customers who shop access accessible and affordable commodities through the welfare schemes.
According to the United Nations, India includes approximately 195 million people who are not getting proper meals, constituting something like a quarter of the world’s largest hunger. The Global Food Security Index (GFSI) ranks India 76th out of 113 countries in 2018, based on four criteria: cost, availability, quality, and safety.