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Economic Survey 2021-22: Money Spent On Agriculture R&D Yields Much Better Returns Than Subsidy
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Nearly 2 01 cr beneficiaries covered under NFSA in Chhattisgarh, says Centre
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allocation made to FCI in lieu of subsidy. It has
been reduced to zero for 2021-22.
As on March 31, 2020, NSSF loans’ outstanding
amount lying with FCI was ₹ 2,54,600 crore.
SOURCE: UNION BUDGET DOCUMENTS
High drawal rate
During the three years, the quantity of food grains drawn by States (annually) hovered around 60 million tonnes to 66 million tonnes. Compared to the allocation, the rate of drawal was 91% to 95%. As the National Food Security Act (NFSA), which came into force in July 2013, enhanced entitlements (covering two-thirds of the country’s population), this naturally pushed up the States’ drawal. Based on an improved version of the targeted Public Distribution System (PDS), the law requires the authorities to provide to each beneficiary 5 kg of rice or wheat per month.
A case for a revamped, need-based PDS
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Amid the ongoing farmers protest lead largely by Punjab and Haryana farmers, the Central government today said that it has directed both the states to ensure online payment to farmers through the electronic mode from the coming procurement season. The wheat procurement season for FY22 will start in the next few weeks. The procurement is done at the Centre-fixed Minimum Support Price (MSP). In a presentation made by the Ministry of Food and Public distribution and Consumer Affairs, the government said that the process of bio-authentication of farmers bringing their produce for procurement by state and central agencies has been started in Uttar Pradesh, wherein states such as Odisha, Chhattisgarh and Madhya Pradesh have shown interest in replicating the model.