Wednesday, 18 September 2013

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

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