The Union government has done well to extend its free food grain supply by another five months from July to November. However, this should not be taken to mean that the food needs of the poor and vulnerable people are taken care of and we do not have to worry about hunger and malnutrition. If the impact of this scheme should not be underestimated, it should not be overestimated either.
In the past, the beneficial impact of food subsidy has been frequently overestimated. There is no doubt that providing wheat at Rs 2 per kg instead of the market rate of around Rs 30 per kg involves a very substantial subsidy, but what is often missed in the discussion is that the amount of subsidised wheat (or rice) which is provided lasts only for about 12 days in a month and for the remaining 18 days, wheat has to be purchased at the market rate. If it is poor quality, contaminated wheat, as often happens in ration shops, then after cleaning subsidised wheat my last for only 9-10 days in a month and for remaining days (over two-third) wheat (or rice) has to be purchased at the market rate. Hence we have to carefully consider the actual impact of schemes involving subsidised and free food on hunger and malnutrition. Here various aspects of this issue are examined.
What is the food budget of an average household without any subsidy?
Here we assume an average working-class vegetarian family of five members which has no access to self-produced and subsidised food, depending entirely on the market. We calculate its daily food-budget in keeping with minimum norms of a balanced nutrition diet. Fuel costs are not considered here.
Daily food budget of a household of five members
Main cereals (wheat, rice, others): Rs 70
Pulses (cooked directly or processed): Rs. 45
Vegetables (cooked and salad): Rs 75
Pickles, salt and spices (including chillies): Rs 15
Edible oils: Rs 15
Milk and milk products: Rs 70
Fruits: Rs 30
Sugar and jaggery: Rs 10
Tea leaves (or alternatives), homemade cold drink: Rs 15
Biscuits, sweets, snacks: Rs 15
Total food budget for one day: Rs 360
The daily food budget of a non-vegetarian household calculated on a similar basis would be somewhat higher than this, but we will proceed further on the basis of the estimates given above.
Representative image. Photo: Ismat Ara
How does the food budget of a household compare with the wages and income?
Of course, the food budget is only part of the total budget of all essential needs. The total budget for all essential needs maybe twice the food budget in a village or thrice the budget in a slum. It can be more or less, depending on several circumstances and how we define essential needs. However, the important point to note here is that a significant percentage of people in our villages and slums are not assured of a daily wage or income which can be sufficient for just the food budget.
A MNREGA worker would earn less than this in many states. A farmworker too would earn less than this in many states. A construction worker may get a little less or a little more, but employment will be available for only 15 days or less in a month on average. For this reason, it is not the wage rate but the average income per day which matters and this is generally less than the household food budget. When both husband and wife together then, of course, household income increases but often wages of female workers are lower without any rational basis.
If the most common food subsidy is given, then what difference does this make to the food budget?
The most common subsidy is of providing five kg of wheat or rice in ration shops at Rs 2-3 per kg per month per listed family member. Now, if all works well (which it does not generally), then this will imply (as the subsidised cereals last only for about 12 days or so), that the per day cost of cereals in the budget is reduced from Rs 70 to about Rs 43 (on the basis that out of 60 kg needed in a month, 25 kg are obtained at subsidised rate and 35 kg at market rate). However, the reduction in the total food budget is only from Rs 360 to Rs 333.
In addition, it should be remembered that even this benefit is subject to several conditions:
- It is available only to those who have the required ration card. Many poor and genuinely needy people do not have a ration card due to a variety of reasons.
- A family may have a ration card but not all family members may be listed; subsidy is available for listed members only.
- In many states, the concerned person with the ration card may be denied subsidy if the biometric process is not satisfied; this may involve visiting ration shop time and again.
- Sometimes, the ration supply may turn out to be badly contaminated.
- Corrupt ration dealers may deny some or all subsidised grain to vulnerable and weak persons.
What about the other food subsidies?
It is true that some other food subsidies are also available to the poorest households for limited supplies of edible oils and pulses, but these can differ from state to state.
Also Read: With No Clarity on Number of Migrant Workers, Food Grain Distribution in a Mess
What is the impact of free food grain scheme introduced recently on food budget?
If the additional 5 kg wheat/rice per member per month and one kg pulses per household per month to ration cardholders are given, then the additional help for the food budget is that the cereal cost per day will be reduced further by Rs 14 only. The free pulse supply will lead to reducing pulse cost per day by around Rs 3. The total food budget will be reduced to Rs 301, which is still less than the total average per day earning of several households in villages and slums.
To summarise, then, if only the impact of cereal subsidy is considered, then the daily cereal cost for our typical working-class household is decreased from Rs 70 to Rs 43 while the total daily food budget is reduced much less significantly from Rs 360 to Rs 333. If in addition, the free grain and pulse supply scheme is considered, then cereal cost per day is reduced to just Rs 14 per day while the total food budget is reduced much less significantly to Rs 301.
The implication is clear that while the impact of the main subsidy scheme and the free food scheme on reducing cereal costs per day is significant, their impact on the total food budget (based on a diet which satisfies minimum nutrition norms) is relatively quite insignificant.
Keeping in view the low and recently decreased incomes of working-class people and also the large numbers of people affected by adverse weather conditions, we should not lower our guard against hunger and malnutrition. Wider efforts to reduce these issues should still continue to get high priority.
Bharat Dogra is a freelance journalist who has been involved in several social movements.
