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National Food Security Act (NFSA), 2013

Overview

As passed by the Parliament, Government has notified the National Food Security Act, 2013 on 10th September, 2013 with the objective to provide for food and nutritional security in human life cycle approach, by ensuring access to adequate quantity of quality food at affordable prices to people to live a life with dignity. The Act provides for coverage of upto 75% of the rural population and upto 50% of the urban population for receiving subsidized foodgrains under Targeted Public Distribution System (TPDS), thus covering about two-thirds of the population. The eligible persons are entitled to receive 5 Kgs of foodgrains per person per month at subsidised prices of Rs. 3/2/1 per Kg for rice/wheat/coarse grains. The existing Antyodaya Anna Yojana (AAY) households, which constitute the poorest of the poor, will continue to receive 35 Kgs of foodgrains per household per month.

The Act also has a special focus on the nutritional support to women and children. Besides meal to pregnant women and lactating mothers during pregnancy and six months after the child birth, such women are also be entitled to receive maternity benefit of not less than Rs. 6,000. Children upto 14 years of age are entitled to nutritious meals as per the prescribed nutritional standards. In case of non-supply of entitled foodgrains or meals, the beneficiaries will receive food security allowance. The Act also contains provisions for setting up of grievance redressal mechanism at the District and State levels. Separate provisions have also been made in the Act for ensuring transparency and accountability.

Status of Implementation of the Act

The Act is now being implemented in all the States/UTs, and 80.72 crore persons are being covered out of intended coverage of 81.34 crore persons. In Chandigarh, Puducherry and urban areas of Dadra & Nagar Haveli, the Act is being implemented in the cash transfer mode, under which food subsidy is credited directly into the bank accounts of beneficiaries, who then have the choice to buy foodgrains from the open market.

Salient Features

Coverage and entitlement under Targeted Public Distribution System (TPDS) : Upto 75% of the rural population and 50% of the urban population will be covered under TPDS, with uniform entitlement of 5 kg per person per month. However, since Antyodaya Anna Yojana (AAY) households constitute poorest of the poor, and are presently entitled to 35 kg per household per month, entitlement of existing AAY households will be protected at 35 kg per household per month.

State-wise coverage :Corresponding to the all India coverage of 75% and 50% in the rural and urban areas, State-wise coverage will be determined by the Central Government. The then Planning Commission (now NITI Aayog) has determined the State-wise coverage by using the NSS Household Consumption Survey data for 2011-12.

Subsidised prices under TPDS and their revision : Foodgrains under TPDS will be made available at subsidised prices of Rs. 3/2/1 per kg for rice, wheat and coarse grains for a period of three years from the date of commencement of the Act. Thereafter prices will be as fixed by the Central Government from time to time, not exceeding MSP. It has been decided by the Government to continue the above mentioned subsidized prices upto June, 2019.

In case, any State’s allocation under the Act is lower than their current allocation, it will be protected upto the level of average offtake under normal TPDS during last three years, at prices to be determined by the Central Government. Existing prices for APL households i.e. Rs. 6.10 per kg for wheat and Rs 8.30 per kg for rice has been determined as issue prices for the additional allocation to protect the average offtake during last three years.

Identification of Households : Within the coverage under TPDS determined for each State, the work of identification of eligible households is to be done by States/UTs.

Nutritional Support to women and children :Pregnant women and lactating mothers and children in the age group of 6 months to 14 years will be entitled to meals as per prescribed nutritional norms under Integrated Child Development Services (ICDS) and Mid-Day Meal (MDM) schemes. Higher nutritional norms have been prescribed for malnourished children upto 6 years of age.

Maternity Benefit :Pregnant women and lactating mothers will also be entitled to receive maternity benefit of not less than Rs. 6,000.

Women Empowerment : Eldest woman of the household of age 18 years or above to be the head of the household for the purpose of issuing of ration cards.

Grievance Redressal Mechanism : Grievance redressal mechanism at the District and State levels. States will have the flexibility to use the existing machinery or set up separate mechanism.

Cost of intra-State transportation & handling of foodgrains and FPS Dealers' margin :Central Government will provide assistance to States in meeting the expenditure incurred by them on transportation of foodgrains within the State, its handling and FPS dealers’ margin as per norms to be devised for this purpose.

Transparency and Accountability :Provisions have been made for disclosure of records relating to PDS, social audits and setting up of Vigilance Committees in order to ensure transparency and accountability.

Food Security Allowance : Provision for food security allowance to entitled beneficiaries in case of non-supply of entitled foodgrains or meals.

Penalty : Provision for penalty on public servant or authority, to be imposed by the State Food Commission, in case of failure to comply with the relief recommended by the District Grievance Redressal Officer.

Assistance to States/UTs for non-building assets for State Food Commissions

The National Food Security Act, 2013 (NFSA) provides that every State Government shall, by notification, constitute a State Food Commission for the purpose of monitoring and review of implementation of the Act. It has been decided that in case a State decides to set up State Food Commission on exclusive basis, Central Government will provide one time financial assistance for non building assets for State Food Commission. Accordingly a component viz., "Assistance to States/UTs for non-building assets for State Food Commissions” has been included under the Umbrella Scheme on "Strengthening of PDS operations” of the Department. Under this component, the assistance is available for non-building assets such as furniture, office equipment, computers etc. These may include computers, air-conditioners, photocopiers, Fax machines, telephones, EPABX system, tables, chairs, storage units etc. Under the scheme, assistance is not provided for any construction activity or any recurring expenses.

Assistance to States/UTs for meeting the expenditure on intra-State transportation and handling of foodgrains and fair price shop dealers’ margin

The Government has finalized the norms of expenditure on above items and the pattern of Central sharing, which are as under:

Category of States/UTs

Norms of expenditure

(Rate in Rs. per quintal)

Central Share

(in percent)

Intra-State transportation and handling

FPS dealers margin

Basic

Additional margin for sale

through Point of Sale (PoS) Device

General

65

70

17

50

Special*

100

143

17

75

(* includes 7 States of North-East, Sikkim, Jammu & Kashmir, Himachal Pradesh, Uttarakhand and Union Territories of Lakshadweep and Andaman & Nicobar Islands)


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