DISTRIBUTIONAL INFRASTRUCTURE FOR IMPLEMENTATION OF FOOD SECURITY ACT

1. PLANNING COLLOQUIUM DISTRIBUTIONAL INFRASTRUCTURE FOR IMPLEMENTATION OF FOOD SECURITY ACT UNDER THE GUIDENCE OF: MRS.PHANISREE MS.SHRUTHIDHAR PRESENTED BY: GROUP-6 10011BA009-HIMABINDU 10011BA015-LAKSHMI PRASANNA 10011BA018-MANISHANKAR 10011BA026-PRASANNA LAXMI 10011BA031-SATHISHWAR 10011BA037-THARUN DEPARMENT OF URBAN & REGIONAL PLANNING

2. Overview It is to discuss on the importance of food security in the context of our nation and discuss about the distributional infrastructure which is the major contributor for the implementation of the act successfully. The presentation is also intended to emphasize the infrastructural needs of the state with respect to the implementation of the food security act

3. What Is Food Security?? Food security is a situation that exists when all people, at all times, have Physical, social and economic access to sufficient, safe and nutritious food to meet their dietary needs and food preferences for an active and healthy life. Food security prevails if both food supply and demand are sufficient to cover food requirements on a continuous and stable basis Food insecurity prevails if, at any time(occasionally, repeatedly or permanently), food supply or demand fall short of requirements

4. GLOBAL SCENARIO (Food and agricultural organisation(FAO)) Hunger remains the no.1 cause of deaths in the world There are 820 million chronically hungry people in the world • 1/3rd of the world’s hungry live in India • 836 million Indians survive on less than Rs.20 a day

5. Existing scenario in India India ranked 10th largest Economy of world on nominal GDP basis and 3rd largest on economy on PPP basis But India has………….. 29% of the 872.9 million undernourished people (FAO) 49% of the world’s underweight children (WHO) 34% of the world’s stunted children (WHO) Over 46% undernourished children (WHO) India is ranked 67 way below neighboring countries like China, Nepal & Pakistan in 2011 Global Hunger Index by the IFPRI.

6. Madhya Pradesh, Uttar Pradesh, Bihar, Rajasthan, and Orissa. UNICEFstudies reveal maximum under-nutrition in the five Indian states:

7. In 2001, Jaipurit was observed that 5 kms outside the city, Food Corporation of India (FCI) godowns were overflowing with grains kept outside. • Fermented by rain, it was rotting. • 5 kms from the godowns was a village where the people were eating in rotation, classically called “rotation eating” where some members of the family eat on one day and the remaining persons eat on the other day. • In 2001, 60 million tonnes were in FCI godowns, • whereas buffer stock required were 20 million tonnes. • The Government had 40 million tonnes above the buffer stock and people were dying of starvation. • On that simple proposition the PUCL in Rajasthan filed a case, which came to the Supreme Court. BACKGROUND TO FOOD SECURITY IN INDIA

8. The Supreme Court Case (April 16, 2001) - People Union for Civil Liberties(Rajasthan) submitted a “writ petition”: • Starvation deaths becoming National Phenomenon while there is surplus stock of food grains in government godowns. • Does right to life mean that people who are starving are too poor to buy food grains free of cost by State from the surplus stock lying with the State particularly when it is lying unused and rotting? • Does the right to life under Article 21 of the Constitution of India include the right to food? • Does the right to food which has been upheld by the apex Court imply that the State has a duty to provide food especially in situations of drought to people who are drought effected and are not in a position to purchase food? Contd…

9. FOOD SECURITY NORMS IN INDIA Court affirms the right to food as necessary to uphold Article 21 of the Constitution of India, which guarantees the fundamental right to “life with human dignity” Closed PDS shops to be re-opened within one week Food Corporation of India (FCI) was ordered to prevent wastage States given the responsibility over implementation of schemes Employment Assurance Scheme Mid-day Meal Scheme Integrated Child Development Scheme National Benefit Maternity Scheme for BPL pregnant women National Old Age Pension Scheme - destitute persons over 65 years Annapurna Scheme Antyodaya Anna Yojana National Family Benefit Scheme Public Distribution Scheme for BPL & APL families

10. PROGRESS SO FAR

11. Main features of food security act The work of identification of eligible households has been left to the states. Pregnant women and lactating mothers entitled to nutritious meals and maternity benefit of at least Rs.6,000 for six months. The central government will provide funds to states in case of short supply of food grain. The current food grain allocation of the states will be protected by the central government. The state governments will provide food security allowance to the beneficiaries in case of non-supply of food grain. Public distribution system to be reformed. The eldest woman in the household, 18 years or above, will be the head of the household for the issue of the ration card. There will be state and district level redress mechanisms.

12. PHYSICAL AVAILABILITY OF FOOD Source:-RBI Hand Book on India Economy 2011-12

13. PERCAPITA AVAILABILITY 2012-13 Source:-National Institute of Nutrition, Hyderabad

14. Contd… • Annual food grain requirement for implementing the NFSA is estimated at 610LMT • Out of this proposed 61 million tonnes of food grains, our 8.24 crore of targeted people require only 494.4LMT and rest shall be for other institutional arrangements. • In year 2011-12 FCI procured 663.5 LMT of Food grains • and off take was 562.8LMT. • The stock at the end of the period was 534.4LMT. • 610LMT can be met easily. • “70% of rice & 80% wheat is procured from Punjab, AP, Chhattisgarh, UP, Haryana & MP. • This requires huge funds to erect infrastructure, man power and transport. • Expected Cost of transport, leakage is up to 40.4 % of the production cost. • It is alleged that Rs 2,07,000 cr is siphoned by middlemen and rats destroy 35% food stuff. Source: CAG

15. The total loss of food grains, as a result, in the last three years and in the first quarter of the current financial year accounted for Rs 2,030.90 crore. • The government needs to strengthen back-end infrastructure before implementing the food security law in the country.

16. India’s Food Security System

17. Farmers or Producers Fair Price Shops How the Public Distribution System works: Grains MSP Distributes Grains C.I.P F.C.I (maintains Buffer Stocks) States Allocates Grains Central Issue Price

18. OVERVIEW OF DISTRIBUTION

19. PROCUREMENT STORAGE MANAGEMENT • 87.86 LMT is lying outside the godowns For the year 2011-2012 Procurement-633.36 Allocation-709 Offtake-563 Requirement for 2012-2013 is 615LMT 2013-2014 is 625LMT 2014-2015 is 634LMT 2015-2016 is 644LMT 2016-2017 is 654LMT • Procurement details: • FCI-9% • Npn DCP-45% • DCP-25% • Pvt millers-22% • Food subsidy by GOI: • 2011-2012: FCI-59,525 State’s-14,845

20. Andhra Pradesh GOI has informed the AP state govt it would only provide food security to 60.98% of poor people in rural areas and 41.14% of poor people in urban areas in AP, largely due to the disparity in calculation of the poor in the state. Our state reported a huge drop in poverty statistics released by the National Statistics Organisation (NSO),“ "The Planning Commission also said there was a 20% drop in poverty in Andhra Pradesh by 2012.“ While the NSO figures put poverty levels in the state at 9.2% the civil supplies department says more than 95% of the population of Andhra Pradesh is not in a position to buy food grains in the open market, without officially certifying them as those living Below Poverty Line (BPL). According to state civil supplies department: Total households: 2.08 crore Total ration cards for BPL: 2.01 cr Total beneficiaries: (cards*avg household)=8.04 cr

21. Civil supplies corporation At present the state supplies 4 kg rice per person per month Rs. 1 per kg. But when the Food Security Bill comes into play, it would have to supply 5 kg to every person each month, that too at Rs 3 per kg. Under the Food Security Bill, 35 kg of rice at Rs 3 per kg for 8.05 crore population, Centre will supply food grains to only 4.56 crore population, The state has to spend an additional Rs 2,500 croreto implement the Food Security Act in Andhra Pradesh since it has to supply rice to an additional 3.4 crore people, if they go by their calculations.

22. STRUCTURAL FRAMEWORK OF THE FCI & CIVIL SUPPLIES GOI FOOD CORPORATION OF INDIA GoAp PROCUREMENT FROM FARMERS, MILLERS at MSP. APSCSCL FCI GODOWNS STATE GODOWNS MLS POINTS Fair price shops Consumer

23. Andhra Pradesh State Civil Supplies Corporation Ltd. is the responsibility of the Corporation to undertake transportation, storage and delivery of the stocks under PDS at the door steps of the Fair Price Shop Dealers. TRANSPORTATION Stage I The transportation of stocks from FCI/Factories to MLS Points is called Stage-I transportation which is being undertaken through the District-wise Transport Contractors appointed separately for food-grains(PPP modes ) • In some Districts, direct lifting of food-grains is also being undertaken from certain FCI godowns to FP Shops within a radius of 25 KMs. by avoiding Stage-I transportation and handling charges. • In Metropolitan areas of Twin Cities, rationed area of Ranga Reddy District, Vijayawada and Visakhapatnam, FP Shop Dealers themselves are directly lifting the stocks from MLS Points. Stage II The transportation from MLS Point to the door step of the F.P. Shop Dealer is called Stage-II transportation which is being undertaken through Corporation Vehicles and Stage-II contractors appointed by the Collectors on approval of the rates by Head Office(PPP modes)

24. ANALYSIS ON STORAGE SPACE Existing godown space of MLS point: 3.20 LMT Additional hired space for storage: 3.04 LMT Total space available: 6.24 LMT Additional amount of space required for storage for allotments of food security act: 1.50 LMT District level space estimated : 6521 MT Per district an average of 6000 MT storage space has to be created in order to address the implementation of food security act successfully

25. OBSERVATIONS Addition of nine items at affordable prizes by the govt of AP is a positive move. The no. of bogus cards in Andhra Pradesh are too high because of which 95% of population is projected to be BPL. Measure of Strengthening of food advisory committees. MSP is given to the farmers with a prompt payment within 3 days. 10 districts have decentralisedprocurements.

26. CHHATTISGARH MODEL Procurement • By computerizing paddy procurement under PDS, the Government of Chhattisgarh • Enhance transparency in operations to mitigate leakages and diversion of funds • Improve the delivery mechanism so PDS commodities reach the target population • Involve citizens in the monitoring process to enhance accountability • The project has Digitised 1532 paddy procurement centres • 50 storage centres of Marketing Federation (MARKFED) • 100 Civil Supplies Corporation distribution centres • 35 FCI rice receiving centres. • Five servers are maintained at the National Informatics Centre (NIC), Chhattisgarh State Centre for hosting all concerned applications and managing the entire database.

27. PDS in CHHATTISGARH • Computerization of Fair Prices Shops (FPS) .  •  “Doorstep delivery” was started wherein GPS-enabled transport vehicles .  • Mobile based applications including SMS alerts for about food grains lifted from godowns and their delivery at ration shops.  • Information pertaining to beneficiaries was made public.  • Painting houses with color codes signifying kind of cards held   • The list of BPL households was displayed at Panchayath offices too.  • centralized monitoring and grievance redressal mechanism in the form of a functioning helpline and access to information regarding PDS.

29. Comparison to Chhattisgarh to National food security COMPARISON BETWEEN CHHATTISGARH FOOD SECURITY & NFSB

30. CASE STUDY OF HYDERABAD The AP CIVIL SUPPLIES CORPORATION has classified the Hyderabad into 9 circles and it has got 9 godowns respectively. CIRCLE1. L.B.NAGAR CIRCLE2. BANDLAGUDA CIRCLE3. BAHADURPURA CIRCLE4. VST CIRCLE5. LANGARHOUSE CIRCLE6. VST CIRCLE7. SANATHNAGAR CIRCLE8. MUSHEERABAD CIRCLE9. MUSHEERABAD There are 2 FCI godowns at Charlapalley & Sanathnagar

31. OBSERVATIONS Addition of nine items at affordable prizes by the govt of AP is a positive move The no. of bogus cards in andhrapradesh are too high because of which 95% of population is projected to be BPL Measure of Strengthening of food advisory committes MSP is given to the farmers with a prompt payment within 3 days 10 districts have decentralised procurements

32. CASE STUDY OF HYDERABAD The AP CIVIL SUPPLIES CORPORATION has classified the Hyderabad into 9 circles and it has got 9 godowns respectively. CIRCLE1. L.B.NAGAR CIRCLE2. BANDLAGUDA CIRCLE3. BAHADURPURA CIRCLE4. VST CIRCLE5. LANGARHOUSE CIRCLE6. VST CIRCLE7. SANATHNAGAR CIRCLE8. MUSHEERABAD CIRCLE9. MUSHEERABAD There are 2 FCI godowns at Charlapalley & Sanathnagar

33. CIRCLE-8 SCENARIO There are 108 rationshops under circle-8 musheerabad There are a total of 70,275 benefeciaries The capacity of the godown is 120 Mts The godown runs efficiently on the rotational basis But an additional allocation of even 20 Mts could impact the functioning of the godown badly Rent: 88,000 per month

34. CIRCLE-4 THE GODOWN CAPACITY- 75MTS CONDITION: POOR (Proposal for reconstruction of the nizam’s reign storage godown ) No aeration to the godown which can spoil the stock There is a loss of stock due to damages and improper maintenance of the godown

35. OBSERVATIONS The existing godowns are serving the PDS but not at a perfect pace Lack of sufficient staff at the godowns Less no. of hamalies (6- 10 hamalies per godown) Lack of facilities to the staff as well as hamalies No proper fire systems No proper ventilation and aeration to the godowns

36. Construction of scientific warehouses • Truck tracking systems • Efficient rotation + Additional storage facilities • SMS alerts • Fire safety systems • Vigilance rotation • Regulations and law to be strengthened Few practical suggestions for effective implementation of Food Security bill…. A way forward….

37. Construction of Scientific Warehousing and Logistics Parks Modern scientific warehouses and multi-modal Logistic parks will have to be developed by the government . These Warehouses and Logistic Parks will need to be connected by Rail, Road, Waterways and Air. Lot of planning and design will need to be done, keeping in mind the future storage and connectivity requirement. Green warehouses will need to be built which will consume very little electricity for internal lighting and air circulation. Existing facilities up-gradation will need to be undertaken to get more out of the existing setupa. Optimal space utilization, movement of units within the warehouses and parks, parking and dispatch bays setup, super flat flooring for vertical space utilization. Assigning space for different warehouse activities, warehouse safety etc. will require intrinsic planning.

38. ?????????????? Will the PDS serve up to the mark or will there be an alternative for PDS i.e., can we propose any PPP models?? Will the government be able to invest in scientific warehouse construction?? Can the govt hire vehicles for the distribution system instead of contractors?? Can the Indian railways meet the demand of rail rakes for Inter and Intra state transportation?? What criteria is to be chosen for issuing of food grains under Food Security Act??

39. “There are people in the world so hungry, that God cannot appear to them except in the form of bread.” Mahatma Gandhi (1869-1948)

40. THANK YOU