Largest Food Subsidy Scheme Launched in India

In order to combat hunger, an expanded food subsidy scheme worth $22-billion was launched in India. The food ordinance is awaiting approval into law.

A new scheme designed to combat hunger in India was launched recently to provide food subsidy to two-thirds of the country’s population. Ahead of the election, the authorities initiated on Wednesday a cheap food program to assist 800 million people living in poverty. This huge undertaking intends to provide five kilos of grain monthly to beneficiaries.

Supporters are optimistic that this scheme worth $22 billion will help alleviate poverty. One of the supporters of the program is Indian philosopher and economist Amartya Sen, a Nobel Prize laureate. This new program is an expansion of a program that provides food assistance to 218 million people in the Indian sub-continent.

A political move

The union cabinet gave their approval in a unanimous vote. Finance Minister KV Thomas informed reporters that the measure will be sent to the President of India for approval into law. However, it must still be ratified by Parliament.

Meanwhile, detractors say that this will only drain the country’s finances. The measure is passed by ministers as a food security ordinance after failing to get the support of Parliament. They received heavy criticism for what is considered a political move for winning votes. The ruling Congress party is apparently starting the campaign to win the upcoming May 2014 mid-term elections. The government is allaying worries and said that it’s confident enough that there will be no problem with the funding for the program.

Largest welfare program

The National Food Security Bill is currently one of the biggest and most ambitious welfare schemes in the world today. The scheme will benefit 75% of Indians in rural areas and 50% in urban centers. The program involves the government selling subsidized rice and wheat to 67% of India’s 1.2 billion population. The proposal involves offering one kilo of rice for three rupees or six cents, a kilo of wheat at two rupees and one rupee for a kilo of millet. Parts of India are currently living in conditions that are poorer than in sub-Saharan Africa.

This program is the pet project of Sonia Gandhi, Congress chief and the leader of a party who has been victorious in the past two elections. The expansion now requires an extra three million tons annually for a total of 61 million tons of grain.

The problem of hunger

India may be enjoying economic progress in the past few years, but hunger is still a huge problem among the populace. India has the most number of malnourished children in the whole world. According to the National Family Health Survey, 50% of children below five years old have malnutrition. The same report stated that 1/3 of the women in India are underweight. The United Nations reported that India is one of the biggest producers in the world, yet it is home to a quarter of the world’s poor and hungry.

Through food rations shops

Economists are not so keen on this very expensive scheme that doubles the worth of the current food subsidy to higher than 1.3 trillion rupees or US$23.9 billion. Critics are also saying that the scheme will make use of food ration shops that are owned by the state and known for corrupt practices and inefficiency. These shops will distribute the food to the population.

Photo Credit: Indian workers tending crops