The Benefits of Social Media for Small and Medium Enterprises (SMEs)

Social media today presents entrepreneurs with a pool of opportunities to expand their businesses and boost their profitability. Most social networking sites were initially meant to help friends and relatives connect with each other online. This is still a core function even though businesses are increasingly exploiting the connections to advance their business objectives.

Facebook, Twitter, YouTube, LinkedIn and others are great platforms for small businesses to not only expand their businesses through conversion of the connections to buyers, but also essential tools that businesses can utilize to handle their customer care services. Engaging with the customers on the social platforms helps to understand their needs better and improve on service delivery.

Closely connected to customer care representation is the crisis management role that social media play. In the recent past, social media has helped both SMEs and multinationals effectively in handling different crises. One major mistake that many businesses commit when faced by a crisis is failure to acknowledge. The truth has some funny way of sneaking from closed door board rooms to the public domain. Your competitors can take advantage of any crises you may be facing and blow them out of proportion for their own benefit. If you have a reasonable social media presence, let your customers understand that everything is under control.

One of the main areas that small businesses have made good use of social media is in advertising and marketing. It is pointless to produce, if you cannot sell. To sell, you have to advertise and market. Initially, companies had to use television, newspapers or other conventional media to get the information about their services and products out. This was an expensive exercise as not many people could afford. As a result, competitors applied monopolistic practices and unfair competition. Today, all you need is a reasonable number of Facebook fans, Twitter likes or YouTube views and you can both advertise and market your products and services at minimal costs.

Of great significance to social media users is the high conversion rate. It is far much easier to convert your followers and friends to buying customers. People who follow you on Twitter must have interest in your product. Therefore, if you are launching a new product, they are likely to be interested in the same. Any serious business must include a shopping cart on their website. You move the traffic from either Facebook or Twitter to your site, let them explore the products and services, and allow them to make an order and pay online. Running a small business is now easier and any determined entrepreneur can do it with little capital.

To get the best from social media for your small or medium enterprise, you must lay out a plan. Do you really need to join social networking site? What is the goal? The objective may be for promotional purposes, customer relations, marketing and advertising, sales, among others. The goals have to be measurable. The most important question however is, which of the many social networking sites is fit for your business? To answer this, consider reviewing where most of your customers belong. To stay safe, use more than one, have a Facebook fan page and a Twitter account for a start.

Finally, ensure that the social media accounts are professionally managed. Keep your connections up to date with the goings in the business as well as social issues.

Courtesy: Various sources

EMPOWERMENT OF WOMEN FOR SELF EMPLOYMENT

The last decade has seen a steady rise of women entrepreneurs in India. With a larger number of women taking to entrepreneurship, academic institutions as well as manufacturing industry, the significance of women entrepreneurs cannot be denied. Women in India have crossed many barriers like the gender-based barriers of starting and growing their businesses, discriminatory property, matrimonial and inheritance laws and/or cultural practices. The lack of access to formal finance mechanisms; limited mobility plus access to information and networks are bottlenecks hindering the growth of women entrepreneurs which should be eradicated to entitle them to fuller participation in business.

Women economic independence by entrepreneurship not only provide benefits to her own family but also can reach out to other economic well-being of the other families and communities, thus contributing to the upliftment of women and contributing to society for advancement.

In order to produce more women entrepreneurs in the country, the National Small Industries Corporation (NSIC) has launched a specialised incubation programme for unemployed girls and women to set up their own businesses.

In India, although women constitute the majority of the total population, the entrepreneurial world is still a male-dominated field. NSIC’s incubation programme is an integrated support scheme that will provide hands-on training on working projects. It provides necessary facilities for prospective entrepreneurs and start-ups to enable them to learn about product manufacturing processes, technology development and business development.

According to the MSME ministry, the MSME sector contributes about 45 per cent of India’s total manufactured output and nearly 40 per cent of its exports. There are some 26 million MSMEs in the country, providing employment to more than 60 million persons. Of a total of 1,564,000 registered enterprises, 215,000 or 13.7 per cent are those of women entrepreneurs.

To encourage women to set up their own ventures, the ministry runs a scheme named Trade Related Entrepreneurship Assistance and Development (TREAD), which envisages economic empowerment of women through the development of their entrepreneurial skills in non-farm activities.

Under the scheme, the Central government gives a grant of up to 30 per cent of the total project cost to non-government organisations (NGOs) for promoting entrepreneurship among women. The remaining 70 per cent is financed by the lending agency as a loan for undertaking activities envisaged in the project.

One of the obstacles faced by entrepreneurs is the lack of physical infrastructure. The NSIC Incubation program is an integrated support by way of providing hands on training on working projects, it provides necessary facilities for prospective entrepreneurs and startup companies to learn product manufacturing processes coupled with technology development and business development.

Courtesy: Smetimes, Business-Standard, Press Information Bureau

Year 2013: Achievements & initiatives of MSME Ministry 
27 Dec, 2013

The Micro, Small and Medium Enterprises (MSM

E) sector is a vibrant sector, which nurtures entrepreneurial talent besides providing employment to millions of people across the country. The sector contributes significantly to balanced and inclusive growth of the economy through mobilization of capital and entrepreneurial skills. MSMEs are important for helping the country achieve 8 percent plus growth of theeconomy with enhanced equity in distribution of income and therefore, are considered as engine of growth in the economic development of the country. For the promotion and development of this sector, the Ministry of Micro, Small and Medium Enterprises (MSME) has been implementing various programmes and schemes. The major achievements so far, during 2013-14 are as follows:

Procurement Policy

The Government of India notified Public Procurement Policy for MSEs, vide Order dated 23.3.2012 (effective from 1st April, 2012), for goods produced and services rendered by Micro & Small Enterprises (MSEs). The policy mandates that all the Central Ministries / Departments / CPSUs shall procure minimum of 20 percent of their annual value of goods / services required by them from Micro and Small Enterprises. Further, policy has earmarked a sub-target of 4 percent procurement out of this 20 percent from MSEs owned by SC / ST Entrepreneurs.

The policy has been circulated to all the Central Ministries / Departments / CPSUs for successful and effective implementation and the policy along with other related documents is available on the office website. All the Chief Ministers of State Governments have also been requested by the then Minister for MSME, to formulate similar policy for Micro and Small Enterprises in their States as per the provisions in MSMED Act, 2006. Queries / doubts raised by the Ministries / Departments / CPSUs for implementation of the policy are clarified from time to time. According to available data, 32 CPSUs have made procurement, more than 20 percent from MSEs in 2012-13.

For developing MSEs Vendors, all the Ministries / Departments / CPSUs have been requested to organize Vendor Development Programmes (VDP) and buyer-seller meets between MSE- suppliers and government- procuring agencies. In 2012-13, 51 CPSUs organised 299 VDPs for MSEs. The Office of Development Commissioner (MSME) through its field offices i.e. Micro, Small and Medium Enterprises - Development Institutes has planned for the year 2013-14 to organize over 50 National Vendor Development Programmes and 350 State Vendor Development Programmes throughout the country in order to develop MSE vendors with a budget allocation of Rs 5.00 crore for 2013-14.

MSE- Cluster Development Programme

The Ministry of MSME has adopted the cluster approach for holistic development of micro and small enterprises in a cost effective manner. Soft Interventions(such as diagnostic study, capacity building, marketing development, export promotion, skill development, technology upgradation, organizing workshops , seminars, training, study visits, exposure visits, etc.) , Hard intervention (setting up of common Facility Centres) and infrastructure upgradation(create/ upgrade infrastructural facilities in the existing industrial/ clusters of MSEs).

A total of 848 interventions in various clusters spread over 28 States and one UTs in country have so far been taken under the programme for Diagnostic study, soft and hard interventions. The efforts under the scheme are focused on covering of more and more clusters from all States / UTs. So far sanctions of Rs. 18.30 crore have been issued till 30th November, 2013 during the current financial year under MSE-CDP. To ensure transparency and speedy implementation of MSE-CDP, online application system has been started from 1st April 2012.

National Manufacturing Competitiveness Programme

The National Manufacturing Competitiveness Programme (NMCP) for the MSMEs, aims at enhancing the competitiveness of enterprise in this sector. There are various components of the NMCP, which have been approved and are available for MSMEs. These are:-

• Lean Manufacturing Competitiveness Scheme (LMCS) for MSMEs
• Design Clinics Scheme for design expertise to MSMEs manufacturing sector
• Marketing Assistance and Technology Upgradation Scheme for MSMEs
• Enabling manufacturing sector to be competitive through Quality Management Standards (QMS) and Quality Technology Tools (QTS).
• Technology of Quality Upgradation Support for MSMEs
• Promotion of Information and Communication Technology (ICT) in MSME sector.
• Building Awareness on Intellectual Rights for MSMEs
• Scheme for Providing Support for "Entrepreneurial and Managerial Developments of SMEs through Incubators".
Prime Minister's Employment Generation Programme (PMEGP)

A national level credit linked subsidy scheme, namely, 'Prime Minister's Employment Generation Programme (PMEGP)'was introduced in August 2008 by merging erstwhile PMRY and REGP schemes of this Ministry during the four terminal years of XI plan (2008-09 to 2011-12) for generating an estimated 37.38 lakh additional employment opportunities. An outlay of Rs. 8060 crore including Rs. 7800 crore as margin money subsidy for PMEGP in the XII Plan has been approved by the Planning Commission. Since inception in 2008-09 to 2012-13, 2.21 lakh units have been assisted with margin money subsidy of Rs. 4147.95 crore to create employment for an estimated 20.34 lakh persons in the country. Under this programme, financial assistance is provided for setting up of micro enterprises each costing upto Rs.10 lakh in service sector and Rs.25 lakh in manufacturing sector. The assistance is provided in the form of subsidy upto 25 per cent (35 per cent for Special category including weaker sections) of the project cost in rural areas while it is 15 per cent (25 per cent for Special category including weaker sections) for urban areas. For 2013-14 an outlay of Rs 1418.28 crore has been earmarked for the scheme. The Guidelines of the schemes are available on the website of the Ministry of MSME.

Skill Development

Skill Development has been taken up as a high priority area by the Ministry through various measures like enhancing the training capabilities of the Tool Rooms, MSME Development Institutes and other organizations under Ministry of MSME. The range of training programme is enormous, covering grass root level programmes related to traditional rural industries/activities to high-end, high tech programmes on CNC machines and other high end technologies. The agencies under the Ministry of MSME conducted programmes for skill development for nearly 5.51 lakh tarinees during the year 2012-13 and the target set for 2013-14 is 6.5 lakh persons. The Ministry of MSME provides all such trainings for SCs/STs free of cost. Special programmes are organized through MSME-DIs for weaker sections of the society viz., SC/STs, women and physically handicapped free of cost besides providing a monthly stipend of Rs. 125/- per week per candidate during the entire period of training.

Credit Guarantee Scheme

The Government is implementing the Credit Guarantee Fund Scheme for Micro and Small Enterprises with the objective of facilitating flow of credit to the MSEs, particularly to micro enterprises by providing guarantee cover for loans upto Rs.100 lakh without collateral / third party guarantees. For making the scheme more attractive to both lenders as well as borrowers, several modifications have been undertaken which, inter alia, include: (a) enhancement in the loan limit to Rs.100 lakh; (b) enhancement of guarantee cover from 75 percent to 85 percent for loans upto Rs. 5 lakh; (c) enhancement of guarantee cover from 75 percent to 80 percent for MSEs owned/operated by women and for loans in North Eastern Region (NER); (d) reduction in one-time guarantee fee from 1.5 percent to 1 percent and annual service charges from 0.75 percent to 0.5 percent for loans upto Rs. 5 lakh and (e) reduction in one-time guarantee fee for NER 1.5 percent to 0.75 percent etc.

As on 30th November, 2013, cumulatively, 13,13,751 proposals have been approved for guarantee cover for a total sanctioned loan amount of Rs. 64452.61 crore.
Credit Linked Capital Subsidy (CLCS) Scheme for Micro and Small Enterprises

The scheme was launched in October-2000 and revised from 29.9.2005. The revised scheme aims at facilitating technology up-gradation of Micro and Small Enterprises (MSEs) by providing 15 percent capital subsidy (limited to maximum Rs. 15 lakhs) for purchase of Plant & Machinery. Maximum limit of eligible loan for calculation of subsidy under the scheme is Rs. 100/- lakhs. Presently, 48 well established and improved technologies/sub sectors have been approved under the Scheme.

The CLCS Scheme is implemented through 10 nodal banks/agencies including SIDBI, NABARD.

Marketing Assistance Scheme

The main objectives of Marketing Assistance Scheme are to enhance the marketing competitiveness of the micro, small and medium enterprises to provide them a platform for interaction with the individual / institutional buyers, to update them with prevalent market scenario and to provide them a forum for redressing their problems. The National Small Industries Corporation Ltd. (NSIC), a public sector undertaking under the administrative control of this Ministry, acts as a facilitator to promote marketing efforts and enhance the competency of the MSMEs for capturing the new market opportunities by way of organizing / participating in various domestic & international exhibitions/trade fairs, buyers-seller meets, intensive campaigns/seminars and other marketing promotion activities.

An amount of Rs.19.25 crore has been allocated in the Budget estimates for 2013-14 for this activity which is targeted to support participation in international and domestic exhibitions/trade fairs and buyer-seller meets and marketing campaigns.

Performance and Credit Rating Scheme

The National Small Industries Corporation Ltd. (NSIC), a public sector undertaking under the Ministry of MSME has been implementing "Performance & Credit Rating Scheme" for micro and small enterprises (MSEs) on behalf of the Government. The scheme is being operated through seven accredited rating agencies i.e. CRISIL, SMERA, ONICRA, CARE, FITCH, ICRA and M/s Brickworks. The scheme is aimed to create awareness amongst micro, small & medium enterprises about the strengths and weakness of their existing operations and to provide them an opportunity to enhance their organizational strengths and credit worthiness. The rating under the scheme serves as a trusted third party opinion on the capabilities and creditworthiness of the micro, small & medium enterprises. An independent rating by an accredited rating agency has a good acceptance from the Banks/Financial Institutions, Customers/Buyers and Vendors. Under this Scheme, rating fee to be paid by the micro, small & medium enterprises is subsidized for the first year only and that is subject to maximum of 75 percent of the fee or Rs. 40000/-, whichever is less.

BE for 2013-14 is Rs. 70.00 crore and it is targeted to support rating of 20000 MSEs during the year.

International Cooperation Scheme

International Cooperation (IC) Scheme is being implemented by the Ministry of MSME since 1996. Technology infusion and /or upgradation of Indian micro, small and medium enterprises (MSMEs), their modernization and promotion of their exports are the important objectives of the scheme.
The Scheme encompasses the following activities:
(i) Deputation of MSME business delegations to other countries for exploring new areas of technology infusion/upgradation, facilitating joint ventures, improving market of MSMEs products, foreign collaborations, etc.
(ii) Participation by Indian MSMEs in international exhibitions, trade fairs and buyer-seller meets in foreign countries as well as in India, in which there is international participation.
(iii) Holding international conferences and seminars on topics and themes of interest to the MSMEs.

BE for 2013-14 is Rs. 5.00 crore and it is expected that 400 entrepreneurs would be facilitated to participate in 40 international events.

Assistance to Training Institutions

Under the scheme assistance is provided to existing and new training Institutions for establishment of Entrepreneurship Development Institute (EDI) and strengthening of their training infrastructure on a matching basis. Ministry provides assistance on a matching basis, not exceeding 50 percent of the project cost or Rs. 150 lakh whichever is less (90 percent or Rs. 270 lakh of the project cost whichever is less, for State level EDIs in Union Territories of Andaman & Nicobar and Lakshadweep Islands) excluding cost of land and working capital. The balance 50 percent of the matching contribution (10 percent for State level EDIs in Union Territories of Andaman & Nicobar and Lakshadweep Islands) should come from the concerned Institute, State/UT Government, public funded institution(s), NGOs/Trusts/ Banks/Companies/ Societies/ Voluntary organizations etc.

The assistance would be for creation of infrastructure. The land will have to be provided by the State Government or any other institution or by the applicant. Financial assistance would be for construction of building, purchase of training aids/equipments, office equipments, computers and for providing other support services e.g. libraries/data bases etc. The costs of land, construction of staff quarters etc. would not qualify for calculation of matching grant from the Central Government. All the proposals under this scheme are required to be recommended by and routed through the concerned State/UT Government.

A new component of training has been added under this scheme, i.e. assistance would be provided under the scheme to following Training Institutions, for conducting Entrepreneurship Development Programmes (EDPs) and Entrepreneurship cum Skill Development Programmes (ESDPs) and Training of Trainers (ToTs) programmes in the areas of Entrepreneurship and/or Skill Development:

• National level EDIs (including branches),
• Training Institutions established by Partner Institutions (PIs) of national level EDIs,
• Training/Incubation centers of NSIC,
• Training cum Incubation Centers (TICs) set up by Franchisees of NSIC
• Other Training institutions with proven professional competency, capacity and experience, approved under the scheme.
Entrepreneurship Skill Development (ESDP) training would normally be of 100 to 300 hours (1 to 3 months). Entrepreneurship Development (EDP) training would be of 72 hours (2 weeks) and Trainer's Training for 300 hours.

BE for 2013-14 is Rs. 102 crore and it is targeted to provide financial assistance to 2 existing/new EDIs and to train 1,05,000 persons.

Udyami Helpline

A 'Udyami Helpline' (a Call Centre for MSMEs) with toll-free number 1800-180-6763 is in operation to provide information, support, guidance and assistance to first generation entrepreneurs as well as other existing entrepreneurs to guide them regarding various promotional schemes of the Government, procedural formalities required for setting up and running of the enterprise and help them in accessing Bank credit etc. The Udyami Helpline has become a useful tool for entrepreneurs and general public to gather information about various schemes of the Ministry.

Source: http://www.smetimes.in/smetimes/news/top-stories/2013/Dec/27/year-2013-achievements-initiatives-of-msme-ministry630556.html

ICRA to rate SME borrowers of PNB at low cost

Kolkata, Dec 26 (KNN) The small and medium enterprises (SMEs), which are borrowers of Punjab National Bank (PNB) will be rated by the credit rating agency ICRA limited at a relatively lower cost, a move which is likely to deliver a number of benefits to the bank as well the SMEs.

ICRA has signed a memorandum of understanding (MoU) with state-run lender PNB for assigning ratings to banks' small enterprises, small scale industries and SME borrowers.

"For PNB, the ratings would serve as an objective and scientific input in decision making, and provide assistance in risk pricing, besides acting as an input in the setting of collateral requirements for borrowers, and facilitating future deals involving collateralised bond and loan obligations (CBOs and CLOs)," the rating agency said in a release.

It further said that PNB borrowers would be able to obtain the ratings at a relatively low cost.

The rating may also place the rated entity in a superior position to possibly obtain competitive credit terms from PNB and the benefit of faster loan processing, the release said.

The SE/SSI ratings will be carried out under the National Small Industries Corporation-ICRA (NSIC-ICRA) Performance and Credit Rating Scheme for SSIs.

The SME ratings, on the other hand will be assigned under the ICRA-SME Rating Scale. “To assist potential and existing SE/SSI and SME borrowers of PNB in obtaining ratings, ICRA is offering special terms to borrowers covered by the MoU,” according to the release.

Source: http://knnindia.co.in/economy/icra-to-rate-sme-borrowers-of-pnb-at-low-cost/2-4253.go

FOSMI organises vendor development programme 

Kolkata, Dec 17 (KNN) With a view to identifying emerging demands of buyers and to provide a platform for vendors to interact with buyers, a state level vendor development programme will be held here.

Organised by FOSMI, MSME-DI, Kolkata and NSIC, Kolkata, Ministry of MSME, Government of India, the programme will be held on December-20.

“In view of the initiatives being taken by MSME-DI, Kolkata and NSIC, Kolkata in the matter we expect some significant PSUs such as Oil India Ltd., GRSE, Coal India, etc. to participate in the programme. Confirmations are awaited also from a number of other large procuring organizations,” FOSMI Secretary, H Ganguly said.

“Also considering the current thrust of the Government of India for implementation of Public Procurement Policy for Micro and Small Enterprises (MSEs) Order 2012 the event acquires special significance,” he added.

Vendors have been asked to fill in a details registration form to help them record details required by buyers in a systematic manner.

Source: http://knnindia.co.in/msmes/fosmi-organises-vendor-development-programme/34-4084.go

'Need to mobilize MSMEs to actively participate in Procurement process' 
18 Dec, 2013

Make ready the Micro, Small and Medium Enterprises (MSMEs) for action to actively participate in the Procurement process related to central public sector undertakings (CPSUs) and state PSUs, Minister of State (Independent Charge) for MSMEs, K. H. Muniyappa asked members of the National Board for Micro, Small and Medium Enterprises (NBMSME) at a meeting on Tuesday.
In his address, the Minister appealed to all the members to mobilize MSME Associations and through them the MSME units to actively participate in the Procurement process related to CPSUs and state PSUs.

He also emphasized the fact that there should be quality products/goods produced by the MSEs which should be available for procurement by PSUs.

The 10th Meeting of the National Board for Micro, Small and Medium Enterprises was held in New Delhi on Tuesday under chairmanship of K. H. Muniyappa and Vice chairperson of NBMSME, G.V. Reddy.

The meeting discussed various aspects of the Micro, Small and Medium (MSME) sector with special focus on the Public Procurement Policy.

K. H. Muniyappa, in his opening remarks described several initiatives of Ministry of MSME for overall development of the sector, and stressed on training through PPP Mode and increasing competitiveness of the sector.

While giving the presentation, Amarendra Sinha, Additional Secretary and Development Commissioner, MSME, emphasized that the Procurement Policy is a statutory requirement under the MSMED Act and this is mandatory for all CPSUs in 3 years.

He also added that the sub target of 4 percent of procurement from SC/ST entrepreneurs should be followed strictly.

He also shared information about the Vendor Development Programme organised by CPSUs, MSME DIs, and NSIC. 

Madhav Lal, Secretary, MSME, in his concluding remark, exuded optimism about the future of the sector and stated that the there have been new development in the MSME sector which includes creation of India Inclusive Innovation Fund, legal framework for factoring services and creation of 15 new technology centres / tool rooms.

Hans Raj Ahir, MP, Lok Sabha, Officials of Ministries/Departments, Government of India, special invitees, representatives from MSME Associations, Financial Institutions, women Entrepreneurs also participated and actively discussed various issues conferring the MSME sector.

Source: http://www.smetimes.in/smetimes/news/top-stories/2013/Dec/18/need-to-mobilize-msmes-to-take-part-in-procurement-process.html

SMEs can Play Key Role in Ensuring Food Security

SMEs, as major drivers of growth engine, are destined to play pivotal role in ensuring food security. SMEs with a fund of infrastructure can provide adequate storage facilities in towns adjacent to agriculture-rich areas, open retail distribution outlets for quality seeds and fertilizers for the farmers in cooperation with local banks and cooperatives and also provide transportation facilities for the movement of food grains and other edibles. SMEs sector has a great potential for translating the national agenda of securing safety for the hungry into practice. Besides, SMEs are also potent instru

ment for being a catalyst for water-energy-food nexus approach. 

The present dispensation at the Centre rushed to put the National Food Security Ordinance (NFSO) 2013 into effect on 5 July 2013. This move was perhaps spurred by the success of the MGNREGA, which was passed in the teeth of substantial opposition, and was hailed as an example of a positive social legislation that worked. The UPA reaped good electoral indents at the 2009 hustings and whether the NFSO will prove an even bigger game-changer in the forthcoming 2014 elections is yet to be seen. 

It is worth mentioning here that the National Food Security Bill was introduced in the Lok Sabha on 22 December 2011and since then an elaborate debate on its merits and implications have ensued. However, despite the considerable time spent on these discussions, the parliament failed to arrive at a consensus. Media reports make it discernible that the new food security bill, which will heavily subsidies basic food for about two-thirds of the population, is sparking nation-wide questions over the wisdom of such an expensive ordinance.

The NFSO is claimed to be a measure designed to benefit the people in general. It hopes to do so by legally entitling roughly 67 percent of the country's population to five kilograms of food grains per month at a highly subsidized rate. The price of rice, wheat and coarse grains has been prescribed to be three rupees, two rupees and one rupee per kilogram respectively.

The NFSO, which appears set to become law nonetheless, has been variously criticized for low food entitlements, inadequate attention to nutrition, too much discretion to state governments in identifying beneficiaries, a poor grievance redressal mechanism and providing scope for substituting the Public Distribution system (PDs) with cash transfers. No one knows what impact it will have — economic, political, and social.

Cost of Implementation

Those associated with the framing of National Food Security Bill have little idea how much implementing the Right to Food will cost. In the current financial year, Union Finance Ministry has allocated only Rs 90,000 crore towards the food subsidy, of which Rs. 10,000 crore is the additional amount for implementing the Food Security Bill. The food ministry estimates that the subsidy bill in the current year is likely to cross Rs 1.3 lakh crore.

And even this is inadequate, according to a paper by the Commission on Agricultural Costs and Prices, which puts the cost at Rs 2.41 lakh crore in the first year of implementation. Over three years, it says, the outlay will be Rs 6.82 lakh crore, including the Rs 1.1 lakh crore required for up scaling food production. Whatever the figure, the fact is that the food subsidy bill has gone up more three times in the same period, from Rs 25,181 crore to Rs 85,000 crore. This is because handling and storage costs have gone up as well.

Malnutrition

The Food Security Bill (FSB) fails to address the problem of malnutrition, especially among the children. On the one hand, India's economy has been growing at 6-9% for over decade now; on the other hand, under nutrition among children has dropped a mere 1% in the eight-year period 1998-99 to 2006. Should we accept a token 0.1% decline in childhood hunger per year? There is a need to understand that underfed people are unable to contribute, even if provided with opportunities, because of lack of capability. Therefore, there is need to build an environment of empowerment with nutritional security.

Prevalent levels of malnutrition result in a 2-3% decline in GDP. It causes delays in education, triggers learning disabilities, and affects the overall physical and cognitive development of children at an early age. Every year, India loses 1.3 million children under the age of 5 due to under nutrition and non-availability/inaccessibility to basic healthcare.

All these factors are at the root of hunger. Professor Arjun Sengupta, in his report on the unorganised sector, mentions that 77% of India's population survives on Rs 20 a day. On the other hand, NNMB (National Nutrition Monitoring Bureau) figures show that 76.8% of the population does not receive the prescribed amounts of nutrition!

The existing Integrated Child Development Services programme aims at spending Rs 80,000 crore in the next five years; the midday meal scheme is already in place. There is a 17 crore under-6 child population, 45% of which is undernourished. But barely Rs 1.62 is spent per child per day on their growth and nutrition.

India contributes 40% to the world's overall maternal, neo-natal, infant and child deaths. It has half the world's undernourished children. Fifty-four per cent of women in the country suffer from anaemia. There is need to end this 'domestic variety of colonialism' where corporations rule over our farmers and labourers and traders indulge in the business of education and health services and keep people deprived of the very basic services in the name of growth. The resources generated through growth should go towards the wellbeing of all people. Not to subsidize corporations.

SMEs

Source: http://www.smeworld.org/story/top-stories/politics-of-food-security.php