National Food Security Act (NFSA) 2013 and recent developments

Why In News?

The NITI Aayog recently circulated a discussion paper on a proposed revision in the National Food Security Act (NFSA), 2013. 

What has the NITI Aayog proposed?

In its discussion paper, the NITI Aayog has suggested that the national rural and urban coverage ratio be reduced from the existing 75-50 to 60-40.

A revision of central issue prices (CIPs) is one of the issues that have been discussed (Economic Survey of 2020-21 had also recommended a revision in the CIPs).

However the revised prices cannot exceed the minimum support price for wheat and coarse grains, and the derived minimum support price for rice.

Background:

What is National Food Security Act (NFSA)?

The NFSA provides a legal right to persons belonging to “eligible households” to receive foodgrains at subsidised price rice at Rs 3/kg, wheat at Rs 2/kg and coarse grain at Rs 1/kg  under the Targeted Public Distribution System (TPDS). 

Priority households are entitled to receive 5 kg of foodgrains per person per month, whereas AAY households are entitled to 35 kg per month at the same prices.

The Act has prescribed the coverage under “eligible households” — 75% of the rural population and up to 50% of the urban population. 

On the basis of Census 2011 figures and the national rural and urban coverage ratios, 81.35 crore persons are covered under NFSA currently. 

This overall figure has been divided among the states and Union Territories, based on the NSSO Household Consumer Expenditure Survey 2011-12.