Agricultural Economics Research Review
Year : 2021, Volume : 34, Issue : conf
First page : ( 234) Last page : ( 234)
Print ISSN : 0971-3441. Online ISSN : 0974-0279.

Changing policies and their sway on food security of India

Mavi H K*, Chopra Shruti, Bhardwaj Sumit

Punjab Agricultural University, Ludhiana-141 002

*Corresponding author: mavihk05@pau.edu

Online Published on 16 March, 2022.

Abstract

The present study has attempted to analyse the food grain production and storage system in light of present agricultural reforms. Findings of the study revealed that FCI has to depend on space available through Central and State Warehousing Corporation and private players. The owned and hired storage facility by FCI is underutilized to the tune of 87 and 73% respectively as these are inept for long-term storage. The new agri-laws together will give full legal control of procurement, supply and storage of food grains in the hands of private players. With time the dissolution of the APMC Act would mean the end of the state-regulated market system and states will lose their powers to regulate commodities and won't have any right to enforce stock hoarding limits which can lead to fluctuation in retail prices. Ironically, on one hand, farmers will be swindled by traders who buy at a lower price and then stockpiled stocks will jack up prices for the end-consumer. The recent recommendation of NITI Ayog to cutting down coverage of NFSA in rural areas from 75% of the population to 60% and from 50% to 40% in urban areas will further increase food vulnerability. If food subsidy is converted in cash transfer under NFSA then again private players will exploit the consumers by demanding a high price for the essential commodities. The study has cautioned fear of hunger and food insecurity which could be avoided if central and state governments invest massively in cold storage, warehouses and modernize the food supply chain model. It will logically create a competitive market and will reduce the wastage of agro-produce. It will ultimately help both farmers and consumers while bringing in price stability and endure governments commitment towards food security.

Top