The Problem with the Right to Free Food

World Food Day, observed on October 16, emphasizes global efforts towards food security and nutritional access. As food insecurity remains a pressing issue, this year’s theme—“Right to Foods for a Better Life and a Better Future”—raises critical questions about India’s food subsidy policies and the effectiveness of its National Food Security Act (NFSA) since its enactment in 2013.

Background of Food Security in India

• Progress in Food Production: India has made significant strides in food production through improved agricultural practices, such as better seeds, irrigation, and mechanization. These advancements were facilitated by government incentives, including subsidies and favorable pricing for farmers.
• National Food Security Act (NFSA): The NFSA was established to provide subsidized grains to about two-thirds of the population, yet its implementation has drawn scrutiny over the economic rationale of distributing free food to such a large segment amid ongoing poverty debates.
• Critique of Current Policies: Previous reforms under the Vajpayee government aimed to target food subsidies more effectively. Critics argue that the current approach of providing free food to over 800 million people is economically unsustainable and serves primarily as a political strategy.

Measuring Poverty and Subsidy Effectiveness

• Changing Poverty Metrics: The NITI Aayog's Multi-dimensional Poverty Index suggests a decline in the poverty ratio, from 29.13% in 2013-14 to 11.28% in 2022-23. This raises questions about the need for extensive free food distribution if poverty levels have indeed decreased.
• Economic Implications of Subsidies: The vast food subsidy constitutes the largest part of the Union budget, diverting funds away from crucial investments in agricultural research, education, and health, which could be more effective in ensuring food security.
• Corruption and Inefficiency: Research indicates that 25-30% of food and fertilizer subsidies fail to reach their intended beneficiaries, with overall inefficiencies leading to losses of up to 40-50%. This inefficiency undermines the objectives of the Right to Food initiative.

Proposed Reforms and Future Directions

• Need for Reform: The current system of food and fertilizer subsidies is viewed as ineffective and susceptible to corruption. A call for reform emphasizes the need for targeted assistance rather than blanket subsidies, suggesting that only a small percentage of the population should receive free food.
• Role of Digitization: Digitizing the agri-food system could enhance efficiency and accountability in the distribution of resources, aiding in the achievement of the Zero Hunger goal by 2030.
• Political Will for Change: For successful reform, the government must demonstrate commitment and prepare for implementation within a short timeframe. Engagement with dedicated experts—while avoiding opportunistic consultants—will be crucial for developing a rational subsidy framework.

Practice Question

Q: Discuss the implications of India’s current food subsidy policies on food security and poverty alleviation. Evaluate potential reforms that could enhance the effectiveness of the National Food Security Act in achieving its objectives.