Management of food security: a study on alternative delivery mechanism for India

Abstract

Food Security has been one of the most debated issues of recent times both in India as well as in international forums. From a conceptual framework it encompasses three dimensions Food Availability, Food Access and Food Adequacy. An elaborate system of food security exists in India with the stated objectives of ensuring remunerative prices to farmers and reasonable prices to consumers while ensuring that the national interests are protected through strategic reserve of food grains. However with almost 30% population living below poverty line and almost 50% children undernourished, India is on the wrong side of food security map of the world. The system as it exists in India has been able to deliver goods to a limited extent in the past. There are still millions of people in the country who do not get two square meals a day. Though the cost of food security is growing year after year, the results are not seen in the field. The system is plagued with high levels of leakages and inefficiency issues. There are problems of incomplete markets, information asymmetries and negative externalities marring the Indian food grain sector. With a favourable demand-supply position, India can afford to have a more market friendly food security model. The policy approach towards production of food grains need to change from subsidy support to infrastructure development with crop insurance providing protective cover to the farmers against vagaries of weather. The MSP system which is known to distort the market can be replaced with a marketing support regime ensuring producer-consumer linkages and proper information assimilation. The alternative suggested for the grain based Public Distribution system is a food coupon based model which will bring in substantial reduction in cost while meeting the primary objective in a market friendly manner. The institutional mechanisms may also undergo changes with FCI assuming the role of a market participant on commercial lines. A new model on the above lines is suggested to meet the food security objective of the country taking into account the market realities and future potential.