The Economic Surveys of the last three years have included a recurring recommendation to address the “burgeoning” food subsidy bill by revising the rates of subsidised grain as well as the number of people covered by the food safety net. This recommendation is conspicuously missing in this year’s report, despite an increase in the subsidy bill.
In 2019, the Survey included a detailed discussion of the rising economic cost of implementing the National Food Security Act (NFSA), 2013, noting that the subsidised rates of ₹2 per kg for wheat and ₹3 per kg for rice at which grains are provided to 81 crore beneficiaries has remained constant even while the cost of procurement and distribution has been on the rise. “For sustainability of food security operations, the issue of burgeoning food subsidy bill needs to be addressed,” it said.
In 2020, the government went a step further, suggesting a revision in the scope of NFSA coverage as well. “The rates fixed under the NFSA initially for a period of three years have not been revised since 2013, resulting in burgeoning food subsidy. The rates under NFSA and the coverage need to be revisited,” it said in the Survey.
