Subject: Economy

India's journey towards achieving food security through the landmark National Food Security Act (NFSA) 2013 represents a significant step in addressing hunger and malnutrition, while also raising important implementation challenges and international trade concerns.

Implementation Challenges

1. Financial Sustainability:

• The fluctuating budgetary allocations, with a 32% reduction to ₹1.97 lakh crore in 2023-24, raise concerns about long-term financial sustainability.
• Rising food procurement costs and increasing operational expenses strain the fiscal resources.

2. Distribution System Inefficiencies:

• Despite improvements, PDS leakages remain significant at 22% (2022-23), though reduced from 42% in 2011-12.
• Issues of ghost beneficiaries and corruption in the distribution chain persist.

3. Identification and Coverage:

• The challenge of accurately identifying beneficiaries among 75% rural and 50% urban population.
• Exclusion errors and targeting issues affect the most vulnerable sections.

WTO Concerns

1. Subsidy Limits:

• India's $48 billion farm input subsidies (2022-23) have raised concerns at the WTO.
• Exceeding the 10% de minimis limit for trade-distorting subsidies on rice creates international trade tensions.

2. Trade Distortion:

• Large-scale procurement and stockholding affect global food prices and trade patterns.
• Concerns from US and UK regarding market distortion and fair competition.

3. Compliance Issues:

• India defends subsidies under WTO's special and differential treatment rules.
• Focus on supporting low-income farmers while maintaining international obligations.

Way Forward

1. Systemic Reforms:

• Strengthening Direct Benefit Transfer (DBT) and Aadhaar-linked distribution.
• Modernizing storage infrastructure and reducing wastage.

2. International Cooperation:

• Engaging in constructive dialogue with WTO members.
• Balancing domestic food security needs with global trade commitments.

The successful implementation of the Food Security Bill requires a delicate balance between ensuring domestic food security and maintaining international trade obligations. While challenges exist, continued reforms and technological integration through initiatives like One Nation One Ration Card and PM-KISAN can help achieve the noble goal of a hunger-free India.