×

Our award-winning reporting has moved

Context provides news and analysis on three of the world’s most critical issues:

climate change, the impact of technology on society, and inclusive economies.

India approves bill to bring millions cheap grain - report

by Nita Bhalla | @nitabhalla | Thomson Reuters Foundation
Tuesday, 12 July 2011 11:12 GMT

The Food Security bill aims to make affordable access to staples such as rice and wheat a constitutional right for many poor Indians

NEW DELHI (AlertNet) - The Indian government has approved a draft law that will guarantee further subsidised grains to millions of poor people in a country where one third of the world's malnourished children live, the Hindustan Times reported on Tuesday.

The Food Security bill – seen as a popular step and a potential vote-winner, but one that could strain public finances – aims to make affordable access to staples such as rice and wheat a constitutional right for many poor Indians. Bolivia is the only other country in the world with a similar law.

The draft law, which was approved by a panel of ministers on Monday, will widen subsidies to 75 percent of India's billion-plus population. India currently provides subsidised grains to about 30 percent of its people.

"Among the major provisions, the (government) will hand out subsidised food to 75 percent of rural households, of which 46 percent forms the so-called 'priority category' or those living below the poverty line," the report said.

"Each individual from below the poverty line families will get a monthly quota of seven kg of rice, wheat or millets for three, two or one rupees, respectively."

The report said the planned law would also cover half of India's urban households, of which 28 percent are classified as living below the poverty line.

According to U.N. Children's Fund (UNICEF), malnutrition is more common in India than in Sub-Saharan Africa and one in every three malnourished children in the world is Indian.

The Food Security bill, an election promise from the ruling Congress party, now has to be ratified by parliament, which will convene on August 1, for it to become law. The country would need about 61 million tonnes of grains a year, the bulk of which would be wheat and rice, to be able to reach those who need it most.

However, concerns remain over the cost of this legislation, with both India's finance ministry and Planning Commission, which charts the country's economic development, having sought to contain the number of beneficiaries entitled to the cheap grains.

(Editing by Rebekah Curtis)

Our Standards: The Thomson Reuters Trust Principles.

-->