WELCOME TO PRESENTATION ON

1. WELCOME TO PRESENTATION ON FOOD SECURITY TO THE POOR

2. The reason • The availability of rice under PDS is on an average 15 kg/month per family • The requirement of rice for an average size family in rural area is 50 kg/month • The gap is on average 35 kg/month • The 35 kg/month is used to be procured from open market • 2/3rd of the food security of the poor becomes vulnerable and subject to market fluctuations

3. The coping mechanism • The stream of income of the poor is not regular-it is fluctuating on day basis • The expenditure for food for each day is more or less the same • The negative gap is being met by the poor either through borrowing or obtaining the food grains on credit basis or adjusted with low intake • The sufferers in the family are women and children

4. Objectives • To attempt to minimise the “Food Gap” in POP and the Poor • To facilitate for the emergence of ‘Total FoodSecurity’ to the target poor at household level • To minimize the rate of exploitation in consumption expenditure made by the poor. • To provide access to good quality and accurate quantity of rice by the target poor through cheaper rates • TO correlate the nutritional improvement in the pregnant women and children with food security initiative

5. Rice Credit Line-Reduction in Food Gap • Identifying the gap between the actual requirement of rice per month for each house-hold and therice availability from FP shop • Consolidating the requirement at VO level • Provision of funds from the CIF @ 90 % of the required funds – 10% being the beneficiary contribution

6. The Cyclical Process in Rice Credit Line • Procurement of required rice on monthly basis by the VO from open market • Distribute it to SHG members through SHGs • Recovery of money through 3 or 4 installments by the VO from SHGs in the same month with little profit margin

7. The Process • Sitting with the members of each SHG • Analyse the consumption pattern • Arriving at the rate of losses in respect of purchase of each commodity • Find out of the requirement of each member • Implementation in few VOs in each Mandal.

8. The facilitation support • Training the VO Executive Committee • Training the CC and Activists in pilot villages • Facilitating the emergence of purchase committee, monitoring committee and recovering committee in each VO. • Introduction of Books of Accounts.

9. Initially, requirement of each member in each SHG will be collected. Requirements of the VO will be arrived. Proposal will be sanctioned and the VO will be SPIA. The purchase committee procures the rice by conducting market survey in respect of quality and the price of the commodity. Implementation process-the collection of indent

10. Implementation process-the distribution • The distribution committee will distribute to SHG leaders. • The SHG leaders will distribute to each member on the same day. • At every stage of distribution, the acknowledgements will be collected.

11. Time line • First of every month SHG requirement is collected, • 2nd to 4th of every month VO level requirement is collected, • 5th to 10th of every month, distribution of rice from the mill to the VO, VO to SHG, SHG to members.

12. Time line (contd..) • 10th every month, last date for distribution to the last member and collection of 1st installment. • 17th- 2nd installment, • 24th , 3rd installment , • 30th / 31st final installment.

13. Only rice will be included Recycling will be for every month or for every six months One month-procurement from open market or by procuring the paddy Six months- procurement of paddy, mill it in local rice mill and distribute to SHGs for every six months The basic model-rice centered

14. The Comprehensive model • The commodity basket includes five commodities- rice, red gram, tamarind, edible oil and red chillies • It will be either one month model or three month model or six month model • In chenchu and other tribal areas the Food Security Basket will comprise 25-30 commodities-all house hold requirements

15. If rice or paddy, it is at VO level In respect of red gram, tamarind, edible oil and red chillies it will be at VO level or at MS level or at Area level At VO level and MS level procurement committees are positioned out of the VO-EC or MS-EC as the case may be At AREA level the procurement committee is constituted with two members from each MS within that MS Procurement

16. If it is monthly recycling, the recovery will be completed from the members within 3 weeks If it is 3 month/6 month model, recovery will be completed within 5 months In monthly model, the instalments will be on weekly basis In 6 monthly model the instalments will be on monthly basis Recovery

17. Funds • The corpus of the SHG • The CIF from the VO/MS • The cash credit limit by the bank to the VO

18. Within the SHG, the food security plan is prepared by the SHG taking each member’s requirement , particularly the POP- both quality and quantity and the nature of food grains The repayment instalments will be fixed as per the convenience of the members The small loan provision is available in the SHG to the member in case she is not able to repay that instalment A poor women in Dondapadu Village of Thulluru Mandal Cooking Rice Inclusive approach

19. The progress • Total no of VOs – 27,000 • No of VOs covered – 6427 • No of SHGs covered –1,63,241 • No. of house-holds covered – 17,67,437 • Quantity of rice – 61,860 MT/month -- 742,323 MT/year • Total turnover per year -- 817 crores • Total cost of the project – Rs.68 crores

22. Reduction in “Food Gap” and incre3ase in food intake by the poor Reduction in price Increase in real income Increase in quality Ensuring “Total Food Security” Caring for the aged, destitutes and pregnant women Capital formation in VOs and MSs The Impact

23. THANK YOU