Attaining food security has been a primary objective of the Indian government since independence. Through consistent efforts, the country achieved self sufficiency in food grains in 1970 and has maintained it since then. However, a significant population of the country still remains undernourished. According to the International Food Policy Research Institute’s 2011 Global Hunger Index, about 21% of India population (and about 60 million children) do not have enough food.
The centerpiece of India’s food security programs, the Public Distribution System (PDS) is overseen by the Department of Public Distribution, which has functioned for over six decades. The system earlier focused on ensuring food security in Urban India. The system’s effectiveness remains hampered by poor implementation. Many Below Poverty Line (BPL) families are excluded from the list whereas some families living above the poverty line have been included.
When India gained independence in 1947, about 85% of its population lived in villages. They were majorly dependent on agriculture for their livelihood. The agriculture techniques employed in that period were traditional with low productivity levels. After independence, the government set up the Ministry of Food and Civil Supplies. The ministry’s main function was managing India’s food economy and ensuring food security for all its citizens.
India’s public distribution system also has a long history. It was initiated before independence to bring stabilization in food prices in some urban areas of the country. In the 1980s it was expanded nationwide to cover non-urban areas. In 1997, the government introduced targeted PDS to ensure food security to families living below poverty line.
The Ministry of Consumer Affairs, Food and PDS consists of two departments – Department of Consumer Affairs and Department of Food and Public Distribution. The main function of the Department of Consumer Affairs is to formulate policies for consumer cooperatives and consumer movement. It also monitors prices and controls statutory bodies such as Bureau of Indian Standards.
The Department of Food and Public Distribution is responsible for India’s food security. It manages food supply through procurement and distribution of food grains. It also maintains food stocks, and monitors their movement and delivery through distribution agencies. It incentivizes farmers under Minimum Support Price mechanism and also ensures food supply at fair prices to BPL families through Public Distribution System (PDS). The department also formulates policies for the sugar sector such as fixing fair prices on sugarcane, ensuring a steady supply of sugar for PDS and fixing levy prices of sugar. It also formulates policies for import and export of food grains, sugar and edible oils.
Attached or Autonomous Bodies
Central Grain Analysis Laboratory (CAGL)
The Central Grain Analysis Laboratory is a premier lab that helps the ministry in establishing the standards for kharif and rabi crop procurement for the Central Pool. It serves to monitor and lay guidelines for the time of food grain procurement, storage conditions and subsequent distribution of the same by working closely with the Food Corporation of India. The organization is majorly involved in monitoring the quality and establishing specifications for procurement, import and export of the food grains. It also acts as a watchdog for monitoring the food grain quality under the Prevention of Food Adulteration Act.
National Sugar Institute (NSI)
A premier institute setup by the government of India in 1936, NSI is closely associated with the sugar and other allied industries, dedicated to promoting research, provide training to personnel and give technical backup to industries. It also sets up standards for sugar in India. It also offers postgraduate courses in sugar technology, sugar engineering, and industrial fermentation and alcohol technology. It also helps the sugar industry by providing research into the problems that are faced by factories.
Indian Grain Storage Management and Research Institute (IGMRI)
IGMRI was set up in the year 1958 at Hapur with the objective of researching into the reasons and the extent of food grain losses happening due to crop infestation by insects, rodents and birds. It is also entrusted with the responsibility for development of standards for storage of grains and suggesting cost effective methods for their handling. It also carries out the research into the post harvest activities that are required for handling and storage of grains. IGMRI has field stations located in Ludhiana, Hyderabad, Jabalpur, Udaipur and Jorhat.
National Test House is a premier testing organization set up in 1912 providing services for testing, evaluation and quality assurance for engineering products for government departments and other large- and small-scale industries. It also provides services in the realm of calibration and testing of mechanical and electrical equipments. It also assists NABL in the accreditation process of testing and calibration laboratories. It is also associated with BIS for formulation of national standards. It also provides services for the checking of civil structures in terms of their stability and durability. NTH plays role in safe and confidential disposal of samples received from various law enforcement agencies.
The Quality Control Cells help various state agencies in ensuring the procurement of good quality food grains. In addition, it also helps in checking the quality during storage and distribution of food grains such as rice, wheat etc. It acts as an enforcement agency in assuring that the government guidelines for the storage of grains are strictly followed by FCI, CWC and other state agencies. It also conducts investigations and inspections based on the complaints received and suggests the actions that are required. There are eight Quality Control Cells.
The directorate, setup as an attached office to the ministry, serves to ensure the implementation of policies that are concerned with the production, distribution and consumption of sugar in the country. It maintains statistical data on the production and consumption of sugar in the country. It monitors the establishment and expansion of new and existing sugar mills. It also releases the monthly levy and non-levy quota of the PDS and for sale in open markets.
Directorate of Vanaspati, Vegetable Oils and Fats (DVVOF)
The directorate was set up as an attached office to the ministry to ensure coordinated management of oils, especially edible oils. It severs to monitor the oil production in the country and adjust import duties accordingly. It strives to ensure the availability of oil in the market and to stabilize the oil prices in the county. The directorate also monitors the quality of the edible oils and it has an extensive laboratory setup to do so. It also carries our research in augmenting the quality of vegetable oils available in the market.
Central Warehousing Corporation (CWC)
Initially started in 1957, CWC aimed at providing logistical support to the agricultural sector of the county. Presently, it offers logistical and warehousing solutions to a multitude of public and private enterprises. It runs over 450 warehouses that store various notified commodities including agricultural commodities and provide for logistical support in transferring them. It has storage facilities for storage of more than 400 commodities. It also offers training and consultancy services for setup of warehouses. It is entrusted to act as the agent of government for purchase of agricultural produce.
Food Corporation of India (FCI)
In order to implement the objectives of the National Food Policy, FCI was setup in 1965 with the objective of price support to farmers and safeguard the interests. It also is responsible for the distribution of food grains via PDS. It is also responsible for monitoring and maintaining adequate minimum stock of food grains. FCI intervenes in the market to stabilize the food grain prices as may be required. Based on the need and stocks of food grains, FCI decides the sale and purchase of various grains.
Hindustan Vegetable Oils Corporation Ltd. (HVOC)
The operations of HVOC were suspended in June 2011 due to continued erosion of capital and losses. The company had eight units, which were engaged in the manufacture of Vanaspati Oils, refining and packing of edible oils. It also manufactures cornflakes and oats. HVOC’s Breakfast Foods Unit is the only operating unit of HVOC engaged in the manufacture of cornflakes and oats.
National Cooperative Consumers’ Federation of India Limited (NCCF)
Setup in the year 1965, the federation serves to act as a nodal point for providing supply support to state co-operatives and various agencies involved in the distribution network of food grains. It also provides technical assistance to co-operatives during the whole cycle of procurement, transport, storage, accounting and other necessary activities in order to improve the operating efficiencies. It also spreads awareness for the development of consumer co-operative movements in the country.
Centre for Consumer Studies (CCS) Indian Institute of Public Administration
CCS is one of the seven centers of excellence setup in the Indian Institute of Public administration, setup in 1954. The centre aims to promote the protection of consumer rights with focus on the rural India. It conducts research into the areas of customer protection, promote and support organizations involved in promoting customer justice, increasing awareness by organizing seminar and workshops and give regular inputs of the Department of Consumer Affairs. It is also involved in sensitizing the industry and various service providers about the needs of the consumers.
Institute of Food Security (IFS)
IFS provides trainings to the personnel of the FCI. It strives to work on enhancing the knowledge and skill sets of FCI’s executives. It develops internal training programs for the FCI and provides trainings to corporate and other agencies on the topics of food security on a contractual basis. IFS is country’s premier institute for advance learning on the topic of food security.
Bureau of Indian Standards (BIS)
The bureau was setup in the year 1986 and was previously known as the Indian Standards Institute (ISI), which was setup in the year 1860. BIS is one of the founding members of the International Organization for Standardization (ISO). The bureau strives to formulate and establish Indian standards for various products and services in order to improve the quality and bring standardization. The bureau is also involved in product certification through its network of 8 laboratories. It also certifies all foreign manufacturers that will export goods into India. The bureau also administers the process of Rajiv Gandhi National Quality Award.
Warehousing Development and Regulatory Authority (WDRA), New Delhi (WDRA) WDRA acts an apex agency that caters to the implementation and regulations of the Warehousing Act, 2007. It looks after the development of new warehouses, regulatory processes and approvals for setup of new warehouses and to promote holistic growth of warehousing business. It also regulates the rates and other terms and conditions that are offered by warehousemen. It also arbitrates in the case of dispute between the warehouse and warehouse receipt holder.
Consumer Complaints Redressal Council, Mumbai (CCRC)
CCRC is a division of the Council for Fair Business Practices that was setup in the late 1960’s. The council receives grievances of the customers and acts a catalyst in getting them resolved. It creates awareness about the rights of the consumers and serves to bridge the gap between the consumers and the manufacturers and service providers.
The total allocation made to the Ministry of Consumer Affairs, Food and PDS for the year 2012-13 is Rs. 76869.45 crore ($13.98 billion USD). From this the Department of Consumer Affairs has been allocated Rs. 602.29 crore ($109.53 million USD) and Department of Food and Public Distribution has been allocated Rs. 76267.16 crore ($13.87 billion USD).
In Department of Consumer Affairs, major allocation of Rs. 300 crore ($54.56 million USD) has been made for food storage and warehousing. Apart from this, civil supplies have been allocated Rs 114.50 crore ($20.82 million USD).
A major portion of the budget allocation to the Department of Food and Public Distribution is for food subsidy. A total of Rs. 75,000 crore ($13.64 billion USD) has been allocated to the department for food subsidies and Rs. 615.09 crore ($111.86 million USD) has been allocated for subsidies on edible oils. Rs. 39.56 crore ($7.19 million USD) has been allocated for civil supplies and Rs. 604.01 crore ($109.85 million USD) has been allocated for consumer industries which include modernization of sugar mills, loans to sugar factories for biodiesel-based power generation and investment in public enterprises among others.
Food Rots in Government Warehouses, Millions Go Hungry
As of January 1, 2010, a Right to Information (RTI) inquiry showed that 10,688 lakh (1.07 billion) tons of food grains were found damaged in Food Corporation of India (FCI) depots, enough to feed over six lakh (600,000) people for over 10 years. This isn’t the first instance. From 1997 to 2007, 1.83 lakh (183,000) tons of wheat, 6.33 lakh (633,000) tons of rice, 2.20 lakh (220,000) tons of unmilled rice and 111 lakh (111,000) tons of maize were damaged in various FCI godowns (warehouses).
In 2012, food grain still rots in the country while millions remain hungry. One hundred kilometers from Union food minister K. V. Thomas’ hometown of Kochi, Kerala, 2,500 tons of wheat rot in a warehouse. In the northern state of Punjab, considered India’s bread basket, 6 million tons of grain worth at least $1.50 billion USD would go to waste. There are also reports of decomposing wheat in an area the size of a football field and as high as a house. The wheat has been there five years.
While India has bumper crops of wheat, its citizens starve. Many blame insufficient infrastructure and government apathy. Storage capacity hasn’t been upgraded in 25 years so wheat is officially stored outside. There aren’t enough sacks and tarps. Grains are left exposed to the elements or minimally covered by a single piece of plastic.
One proposed solution would be to distribute excess grain or release it via the Public Distribution System (PDS). However, Pranab Mukherjee, the former finance minister, rejected this idea citing fiscal constraint. Distribution was estimated at an additional Rs. 5,000 crore ($923.19 million USD). Instead, the government this year permitted the export of up to 4 million tons of non-basmati rice.
Food Grains Rot in FCI Godowns Across India (Hindustan Times)
Rotting Foodgrain a Shame (India Today)
As Crops Rot, Millions Go Hungry in India (by Mayank Bhardwaj, Reuters)
Rajasthan: Grain Rot Continues Amidst Govt Apathy (by Swati Vashishtha, CNN-IBN)
Rotting Grain Adds to India's Food Problem (by Tanushree Sharma Sandhu, DW)
Government Fails to Rein In Oil Mafia
The “Oil mafia” is rampant in several states. Ration card holders are allocated a kerosene quota, but many times when they arrived at the PDS shop, the shop keeper does not have enough. That is because the “mafia” steal an estimated 38% of PDS subsidized kerosene, valued at roughly Rs. 10,000 crore ($1.85 billion USD), and either sell it or use it to adulterate petrol or diesel on the black market. The mixed fuel commands a hefty profit as petrol cost Rs 58.37 ($1.08 USD) per liter versus Rs. 12.32 ($0.23 USD) per liter for kerosene (as of January 2011).
Not only it has lead to enormous financial losses, safety and security of people has also been compromised. Government officials have been set on fire, assaulted and murdered when investigating kerosene complaints and during raids. In January 2011, Yashwant Sonawane was doused with kerosene and set ablaze near Malegaon, Maharashtra and in October 2012, a district supply officer was set on fire during a raid in Uttar Pradesh.
Oil Mafia in Maharashtra Worth over Rs 10,000 Crore Annually (by Baljeet Parmar & Sunchika B Pandey, DNA)
Why the Mafia Loves Kerosene, with a lot of Help from the Govt (by Amitav Ranjan, The Indian Express)
Kerosene Mafia Tries to Set District Supply Officer on Fire (The Times of India)
Bid to Torch Officer: Police Go Soft on Kerosene Mafia (by Pervez Iqbal Siddiqui, The Times of India)
Nashik Additional Collector Burnt Alive during Raids on Kerosene Mafia (by Kiran Tare, India Today)
Oil Mafia Attempts to Set Govt Officer on Fire (Hindustan Times)
Inadequate Preparation for the Regulation of Genetically Modified (GM) Foods
In August 2012, the Lok Sabha Committee on Agriculture presented a report titled “Cultivation of Genetically Modified Food Crops – Prospects and Effects” that heavily criticized DCA for its lack of readiness in dealing with transgenic food crops. The committee expressed surprise that despite DCA’s consumer protection mandate, it demonstrates “unawareness and unpreparedness” in regulating GM foods. The committee strongly condemned the department’s lack of action. Citing a complete lack of awareness amongst DCA officials, the committee further stated that DCA was “blissfully unaware of the reports that commodities derived from transgenic food crops were coming into the Country, unchecked and uncontrolled…” DCA, for its part, maintained that BIS has set up the Biotechnology for Food and Agriculture Sectional Committee to implement standardization processes for foods produced using modern biotechnology, including GM foods. The committee pointed out that these measures are mostly test methods and adoption of the guidelines is voluntary and not legally binding. DCA’s inaction jeopardizes consumers’ rights, interest, and ability to make informed choices, in spite of its creation for the promotion of those very things.
On January 1, 2013, the Legal Metrology (Packaged Commodities) Rules, 2011 requiring labeling of all GM foods, came into effect. The rule, first notified in the Gazette in June 2012, states that "every package containing the genetically modified food shall bear at the top of its principal display panel the letters ‘GM.’” Consumer rights groups echoed the committee’s position by pointing out that the department is unprepared to meet the demands of this ruling. “It is a good step, but it is being done without any preparation at all. We don't know how this rule will be implemented or how it will be applied to products with GM content that are being imported or how the violators be prosecuted,” stated Bejon Misra, a consumer rights activist.
Cultivation of Genetically Modified Food Crops - Prospects and Effects (Committee on Agriculture, 15th Lok Sabha)
India’s GM Food Labelling Comes into Force (AgroNews)
GM Food Labelling Comes into Force Amid Fears over 'Lack of Planning' (by Dinesh C. Sharma, DailyMail)
Centre Makes Labelling of GM Foods Mandatory (by Gargi Parsai, The Hindu)
Direct Cash Transfer Instead of PDS Ration
A Delhi government pilot program funded by the United Nations Development Program (UNDP) was testing the viability of direct cash transfers and also was an attempt to circumvent the corrupt PDS. The government is contemplating introducing direct cash transfer program in many cities and towns.
Raghubir Nagar, a resettlement neighborhood in West Delhi was selected as the first urban trial for giving cash instead of PDS rations. In 2011, households there received Rs. 1,000 ($18.41 USD) monthly in a female family member's bank account in lieu of rice, wheat, sugar and kerosene at subsidized rates.
Pro-Direct Cash Transfer Instead of PDS Ration
Individuals with “below the poverty line” (BPL) ration card are entitled to receive a certain amount of grains, sugar and kerosene per month. These items can only be picked up at the PDS shop, which many times is not open when it’s supposed to be. Also, supplies are often inferior quality and/or not full amount. Many supplies are siphoned off and sold on the black market. The Planning Commission estimates that 58 per cent of subsidized food grain does not reach the intended beneficiaries. A direct cash transfer frees recipients to shop at wholesale markets, obtain better quality food, and not be at the mercy of the PDS shop.
Poverty Ridden Opt for Cash Transfer over PDS (by Prasad Nichenametla, Hindustan Times)
Anti-Direct Cash Transfer Instead of PDS Ration
The National Federation of Indian Women (NFIM) is concerned that direct cash transfers will reduce transparency of the economy and that funds will be misused by other family members. On a wider economic scale, there is worry that without PDS, the government will have a surplus of the food grain that was allocation for distribution. And since the government buys the grain at a minimum price per year, with a surplus, food grain prices may crash.
Direct Cash Transfer is Unscientific (Deccan Herald)
Old Diet, New Recipe (by Sebastian P.T., Business Today)
Enact a Universal PDS
PDS is supposed to bring food and fuel to the poorest in the country. But India is unable to target the right households. In 2004-05 the National Council of Applied Economic Research (NCAER) and the University of Maryland found that only 48% of the poor had access to BPL cards while 31% of the non-poor households HAD access to BPL cards. One solution is a universal PDS to ensure that the subsidized food reaches to those who need it the most. A universal PDS would be revamped to distribute more nutritional grains such as millet instead of wheat and sugar.
India also faces rapid inflation on food prices. The week of February 6, 2010 food prices rose nearly 18%, making may daily items harder to afford. The Centre for Budget and Governance Accountability (CBGA) suggested that funneling affordable food grains via a universal PDS would bring down food prices.
Universal PDS Can Fix the Problem of Malnutrition (by Sonalde Desai, The Economic Times)
Is Universal PDS a Good Idea? (by Thiruvoipati Nandakumar, Indian Express)
The Task of Making the PDS Work (by Jean Dreze, The Hindu)
Universal PDS Only Way to Beat Hunger, Tackle Price Spiral? (by Subodh Varma, Times of India)
Sharad Pawar
Currently India’s Agriculture Minister, Sharad Chandra Govindro Pawar was Minister of Consumer Affairs and Public Distribution between May 31, 2009 and January 19, 2011.
Pawar was born on December 12, 1940 in Baramati, a sugar-producing region in Maharashtra’s Pune district. Pawar comes from a land-owning family. He is a member of the Maratha caste.
Pawar was first elected to the Maharashtra Assembly in 1967. He went onto become Maharashtra chief minister four times but never completed a full five-year term. Pawar has been elected to the Lok Sabha seven times and has been leader of the opposition once. He currently represents the Madha parliamentary constituency in the Lok Sabha.
Pawar is considered a shrewd political operative. In 1998, onion traders from Maharashtra starved New Delhi of onions, leading to a shortage. The crisis reportedly led to the ruling BJP losing the Delhi Assembly losing elections. An investigation by the central BJP government led to raids on Maharashtra warehouses, where traders where found to be hoarding onions. Pawar is rumored to have engineered the artificial shortage.
Pawar was a Congress party member till May 1999, when he formed the Nationalist Congress Party (NCP), a splinter faction. NCP has been part of the two Congress-led central governments in 2004 and 2009. Though it was expected to merge with the Congress, it has so far stayed independent, a part of Pawar’s political strategy to extract more mileage, say observers.
He also has vast administrative and legislative experience. From 2004 onwards he has been a Union Minister of Agriculture and Consumer Affairs and Public Distribution with a short break in May 2009 when he was again elected and continued to hold the same portfolios. In a minor reshuffle of the Union cabinet in January 2011, he lost the Consumer Affairs and Public Distribution ministry but was given Food Processing Industries.
Pawar continues to have active business and political interests in Maharashtra. In the Congress-NCP coalition government in Maharashtra, his nephew is the deputy chief minister while his only child, Supriya Sule, is a Rajya Sabha member.
Widely respected, Pawar has never been caught in a corruption scandal though there have been many unsubstantiated allegations. He has managed to maintain a clean record despite having friends and family members with alleged wrongdoings.
In November 2011, Pawar made headlines when he was slapped by Harvinder Singh, who previously slapped former Telecom Minister Sukh Ram. Singh became a minor Internet celebrity after the release of the Chamaat Song (Slap Song). The tune borrowed the music from a popular Tamil film song and remixed to celebrate Singh’s assault.
Sharad Yadav
Sharad Yadav served as the Union Minister for Consumer Affairs, Food and Public Distribution from July 01, 2002 to May 15, 2004. He is a member of Janta Dal United and represents Madhepura constituency of Bihar in the current Lok Sabha. Apart from being the food minister, he was Union Minister for Civil Aviation and Union Minister for Labor.
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Ministry of Consumer Affairs, Food and Public Distribution
Attaining food security has been a primary objective of the Indian government since independence. Through consistent efforts, the country achieved self sufficiency in food grains in 1970 and has maintained it since then. However, a significant population of the country still remains undernourished. According to the International Food Policy Research Institute’s 2011 Global Hunger Index, about 21% of India population (and about 60 million children) do not have enough food.
The centerpiece of India’s food security programs, the Public Distribution System (PDS) is overseen by the Department of Public Distribution, which has functioned for over six decades. The system earlier focused on ensuring food security in Urban India. The system’s effectiveness remains hampered by poor implementation. Many Below Poverty Line (BPL) families are excluded from the list whereas some families living above the poverty line have been included.
When India gained independence in 1947, about 85% of its population lived in villages. They were majorly dependent on agriculture for their livelihood. The agriculture techniques employed in that period were traditional with low productivity levels. After independence, the government set up the Ministry of Food and Civil Supplies. The ministry’s main function was managing India’s food economy and ensuring food security for all its citizens.
India’s public distribution system also has a long history. It was initiated before independence to bring stabilization in food prices in some urban areas of the country. In the 1980s it was expanded nationwide to cover non-urban areas. In 1997, the government introduced targeted PDS to ensure food security to families living below poverty line.
The Ministry of Consumer Affairs, Food and PDS consists of two departments – Department of Consumer Affairs and Department of Food and Public Distribution. The main function of the Department of Consumer Affairs is to formulate policies for consumer cooperatives and consumer movement. It also monitors prices and controls statutory bodies such as Bureau of Indian Standards.
The Department of Food and Public Distribution is responsible for India’s food security. It manages food supply through procurement and distribution of food grains. It also maintains food stocks, and monitors their movement and delivery through distribution agencies. It incentivizes farmers under Minimum Support Price mechanism and also ensures food supply at fair prices to BPL families through Public Distribution System (PDS). The department also formulates policies for the sugar sector such as fixing fair prices on sugarcane, ensuring a steady supply of sugar for PDS and fixing levy prices of sugar. It also formulates policies for import and export of food grains, sugar and edible oils.
Attached or Autonomous Bodies
Central Grain Analysis Laboratory (CAGL)
The Central Grain Analysis Laboratory is a premier lab that helps the ministry in establishing the standards for kharif and rabi crop procurement for the Central Pool. It serves to monitor and lay guidelines for the time of food grain procurement, storage conditions and subsequent distribution of the same by working closely with the Food Corporation of India. The organization is majorly involved in monitoring the quality and establishing specifications for procurement, import and export of the food grains. It also acts as a watchdog for monitoring the food grain quality under the Prevention of Food Adulteration Act.
National Sugar Institute (NSI)
A premier institute setup by the government of India in 1936, NSI is closely associated with the sugar and other allied industries, dedicated to promoting research, provide training to personnel and give technical backup to industries. It also sets up standards for sugar in India. It also offers postgraduate courses in sugar technology, sugar engineering, and industrial fermentation and alcohol technology. It also helps the sugar industry by providing research into the problems that are faced by factories.
Indian Grain Storage Management and Research Institute (IGMRI)
IGMRI was set up in the year 1958 at Hapur with the objective of researching into the reasons and the extent of food grain losses happening due to crop infestation by insects, rodents and birds. It is also entrusted with the responsibility for development of standards for storage of grains and suggesting cost effective methods for their handling. It also carries out the research into the post harvest activities that are required for handling and storage of grains. IGMRI has field stations located in Ludhiana, Hyderabad, Jabalpur, Udaipur and Jorhat.
National Test House is a premier testing organization set up in 1912 providing services for testing, evaluation and quality assurance for engineering products for government departments and other large- and small-scale industries. It also provides services in the realm of calibration and testing of mechanical and electrical equipments. It also assists NABL in the accreditation process of testing and calibration laboratories. It is also associated with BIS for formulation of national standards. It also provides services for the checking of civil structures in terms of their stability and durability. NTH plays role in safe and confidential disposal of samples received from various law enforcement agencies.
The Quality Control Cells help various state agencies in ensuring the procurement of good quality food grains. In addition, it also helps in checking the quality during storage and distribution of food grains such as rice, wheat etc. It acts as an enforcement agency in assuring that the government guidelines for the storage of grains are strictly followed by FCI, CWC and other state agencies. It also conducts investigations and inspections based on the complaints received and suggests the actions that are required. There are eight Quality Control Cells.
The directorate, setup as an attached office to the ministry, serves to ensure the implementation of policies that are concerned with the production, distribution and consumption of sugar in the country. It maintains statistical data on the production and consumption of sugar in the country. It monitors the establishment and expansion of new and existing sugar mills. It also releases the monthly levy and non-levy quota of the PDS and for sale in open markets.
Directorate of Vanaspati, Vegetable Oils and Fats (DVVOF)
The directorate was set up as an attached office to the ministry to ensure coordinated management of oils, especially edible oils. It severs to monitor the oil production in the country and adjust import duties accordingly. It strives to ensure the availability of oil in the market and to stabilize the oil prices in the county. The directorate also monitors the quality of the edible oils and it has an extensive laboratory setup to do so. It also carries our research in augmenting the quality of vegetable oils available in the market.
Central Warehousing Corporation (CWC)
Initially started in 1957, CWC aimed at providing logistical support to the agricultural sector of the county. Presently, it offers logistical and warehousing solutions to a multitude of public and private enterprises. It runs over 450 warehouses that store various notified commodities including agricultural commodities and provide for logistical support in transferring them. It has storage facilities for storage of more than 400 commodities. It also offers training and consultancy services for setup of warehouses. It is entrusted to act as the agent of government for purchase of agricultural produce.
Food Corporation of India (FCI)
In order to implement the objectives of the National Food Policy, FCI was setup in 1965 with the objective of price support to farmers and safeguard the interests. It also is responsible for the distribution of food grains via PDS. It is also responsible for monitoring and maintaining adequate minimum stock of food grains. FCI intervenes in the market to stabilize the food grain prices as may be required. Based on the need and stocks of food grains, FCI decides the sale and purchase of various grains.
Hindustan Vegetable Oils Corporation Ltd. (HVOC)
The operations of HVOC were suspended in June 2011 due to continued erosion of capital and losses. The company had eight units, which were engaged in the manufacture of Vanaspati Oils, refining and packing of edible oils. It also manufactures cornflakes and oats. HVOC’s Breakfast Foods Unit is the only operating unit of HVOC engaged in the manufacture of cornflakes and oats.
National Cooperative Consumers’ Federation of India Limited (NCCF)
Setup in the year 1965, the federation serves to act as a nodal point for providing supply support to state co-operatives and various agencies involved in the distribution network of food grains. It also provides technical assistance to co-operatives during the whole cycle of procurement, transport, storage, accounting and other necessary activities in order to improve the operating efficiencies. It also spreads awareness for the development of consumer co-operative movements in the country.
Centre for Consumer Studies (CCS) Indian Institute of Public Administration
CCS is one of the seven centers of excellence setup in the Indian Institute of Public administration, setup in 1954. The centre aims to promote the protection of consumer rights with focus on the rural India. It conducts research into the areas of customer protection, promote and support organizations involved in promoting customer justice, increasing awareness by organizing seminar and workshops and give regular inputs of the Department of Consumer Affairs. It is also involved in sensitizing the industry and various service providers about the needs of the consumers.
Institute of Food Security (IFS)
IFS provides trainings to the personnel of the FCI. It strives to work on enhancing the knowledge and skill sets of FCI’s executives. It develops internal training programs for the FCI and provides trainings to corporate and other agencies on the topics of food security on a contractual basis. IFS is country’s premier institute for advance learning on the topic of food security.
Bureau of Indian Standards (BIS)
The bureau was setup in the year 1986 and was previously known as the Indian Standards Institute (ISI), which was setup in the year 1860. BIS is one of the founding members of the International Organization for Standardization (ISO). The bureau strives to formulate and establish Indian standards for various products and services in order to improve the quality and bring standardization. The bureau is also involved in product certification through its network of 8 laboratories. It also certifies all foreign manufacturers that will export goods into India. The bureau also administers the process of Rajiv Gandhi National Quality Award.
Warehousing Development and Regulatory Authority (WDRA), New Delhi (WDRA) WDRA acts an apex agency that caters to the implementation and regulations of the Warehousing Act, 2007. It looks after the development of new warehouses, regulatory processes and approvals for setup of new warehouses and to promote holistic growth of warehousing business. It also regulates the rates and other terms and conditions that are offered by warehousemen. It also arbitrates in the case of dispute between the warehouse and warehouse receipt holder.
Consumer Complaints Redressal Council, Mumbai (CCRC)
CCRC is a division of the Council for Fair Business Practices that was setup in the late 1960’s. The council receives grievances of the customers and acts a catalyst in getting them resolved. It creates awareness about the rights of the consumers and serves to bridge the gap between the consumers and the manufacturers and service providers.
The total allocation made to the Ministry of Consumer Affairs, Food and PDS for the year 2012-13 is Rs. 76869.45 crore ($13.98 billion USD). From this the Department of Consumer Affairs has been allocated Rs. 602.29 crore ($109.53 million USD) and Department of Food and Public Distribution has been allocated Rs. 76267.16 crore ($13.87 billion USD).
In Department of Consumer Affairs, major allocation of Rs. 300 crore ($54.56 million USD) has been made for food storage and warehousing. Apart from this, civil supplies have been allocated Rs 114.50 crore ($20.82 million USD).
A major portion of the budget allocation to the Department of Food and Public Distribution is for food subsidy. A total of Rs. 75,000 crore ($13.64 billion USD) has been allocated to the department for food subsidies and Rs. 615.09 crore ($111.86 million USD) has been allocated for subsidies on edible oils. Rs. 39.56 crore ($7.19 million USD) has been allocated for civil supplies and Rs. 604.01 crore ($109.85 million USD) has been allocated for consumer industries which include modernization of sugar mills, loans to sugar factories for biodiesel-based power generation and investment in public enterprises among others.
Food Rots in Government Warehouses, Millions Go Hungry
As of January 1, 2010, a Right to Information (RTI) inquiry showed that 10,688 lakh (1.07 billion) tons of food grains were found damaged in Food Corporation of India (FCI) depots, enough to feed over six lakh (600,000) people for over 10 years. This isn’t the first instance. From 1997 to 2007, 1.83 lakh (183,000) tons of wheat, 6.33 lakh (633,000) tons of rice, 2.20 lakh (220,000) tons of unmilled rice and 111 lakh (111,000) tons of maize were damaged in various FCI godowns (warehouses).
In 2012, food grain still rots in the country while millions remain hungry. One hundred kilometers from Union food minister K. V. Thomas’ hometown of Kochi, Kerala, 2,500 tons of wheat rot in a warehouse. In the northern state of Punjab, considered India’s bread basket, 6 million tons of grain worth at least $1.50 billion USD would go to waste. There are also reports of decomposing wheat in an area the size of a football field and as high as a house. The wheat has been there five years.
While India has bumper crops of wheat, its citizens starve. Many blame insufficient infrastructure and government apathy. Storage capacity hasn’t been upgraded in 25 years so wheat is officially stored outside. There aren’t enough sacks and tarps. Grains are left exposed to the elements or minimally covered by a single piece of plastic.
One proposed solution would be to distribute excess grain or release it via the Public Distribution System (PDS). However, Pranab Mukherjee, the former finance minister, rejected this idea citing fiscal constraint. Distribution was estimated at an additional Rs. 5,000 crore ($923.19 million USD). Instead, the government this year permitted the export of up to 4 million tons of non-basmati rice.
Food Grains Rot in FCI Godowns Across India (Hindustan Times)
Rotting Foodgrain a Shame (India Today)
As Crops Rot, Millions Go Hungry in India (by Mayank Bhardwaj, Reuters)
Rajasthan: Grain Rot Continues Amidst Govt Apathy (by Swati Vashishtha, CNN-IBN)
Rotting Grain Adds to India's Food Problem (by Tanushree Sharma Sandhu, DW)
Government Fails to Rein In Oil Mafia
The “Oil mafia” is rampant in several states. Ration card holders are allocated a kerosene quota, but many times when they arrived at the PDS shop, the shop keeper does not have enough. That is because the “mafia” steal an estimated 38% of PDS subsidized kerosene, valued at roughly Rs. 10,000 crore ($1.85 billion USD), and either sell it or use it to adulterate petrol or diesel on the black market. The mixed fuel commands a hefty profit as petrol cost Rs 58.37 ($1.08 USD) per liter versus Rs. 12.32 ($0.23 USD) per liter for kerosene (as of January 2011).
Not only it has lead to enormous financial losses, safety and security of people has also been compromised. Government officials have been set on fire, assaulted and murdered when investigating kerosene complaints and during raids. In January 2011, Yashwant Sonawane was doused with kerosene and set ablaze near Malegaon, Maharashtra and in October 2012, a district supply officer was set on fire during a raid in Uttar Pradesh.
Oil Mafia in Maharashtra Worth over Rs 10,000 Crore Annually (by Baljeet Parmar & Sunchika B Pandey, DNA)
Why the Mafia Loves Kerosene, with a lot of Help from the Govt (by Amitav Ranjan, The Indian Express)
Kerosene Mafia Tries to Set District Supply Officer on Fire (The Times of India)
Bid to Torch Officer: Police Go Soft on Kerosene Mafia (by Pervez Iqbal Siddiqui, The Times of India)
Nashik Additional Collector Burnt Alive during Raids on Kerosene Mafia (by Kiran Tare, India Today)
Oil Mafia Attempts to Set Govt Officer on Fire (Hindustan Times)
Inadequate Preparation for the Regulation of Genetically Modified (GM) Foods
In August 2012, the Lok Sabha Committee on Agriculture presented a report titled “Cultivation of Genetically Modified Food Crops – Prospects and Effects” that heavily criticized DCA for its lack of readiness in dealing with transgenic food crops. The committee expressed surprise that despite DCA’s consumer protection mandate, it demonstrates “unawareness and unpreparedness” in regulating GM foods. The committee strongly condemned the department’s lack of action. Citing a complete lack of awareness amongst DCA officials, the committee further stated that DCA was “blissfully unaware of the reports that commodities derived from transgenic food crops were coming into the Country, unchecked and uncontrolled…” DCA, for its part, maintained that BIS has set up the Biotechnology for Food and Agriculture Sectional Committee to implement standardization processes for foods produced using modern biotechnology, including GM foods. The committee pointed out that these measures are mostly test methods and adoption of the guidelines is voluntary and not legally binding. DCA’s inaction jeopardizes consumers’ rights, interest, and ability to make informed choices, in spite of its creation for the promotion of those very things.
On January 1, 2013, the Legal Metrology (Packaged Commodities) Rules, 2011 requiring labeling of all GM foods, came into effect. The rule, first notified in the Gazette in June 2012, states that "every package containing the genetically modified food shall bear at the top of its principal display panel the letters ‘GM.’” Consumer rights groups echoed the committee’s position by pointing out that the department is unprepared to meet the demands of this ruling. “It is a good step, but it is being done without any preparation at all. We don't know how this rule will be implemented or how it will be applied to products with GM content that are being imported or how the violators be prosecuted,” stated Bejon Misra, a consumer rights activist.
Cultivation of Genetically Modified Food Crops - Prospects and Effects (Committee on Agriculture, 15th Lok Sabha)
India’s GM Food Labelling Comes into Force (AgroNews)
GM Food Labelling Comes into Force Amid Fears over 'Lack of Planning' (by Dinesh C. Sharma, DailyMail)
Centre Makes Labelling of GM Foods Mandatory (by Gargi Parsai, The Hindu)
Direct Cash Transfer Instead of PDS Ration
A Delhi government pilot program funded by the United Nations Development Program (UNDP) was testing the viability of direct cash transfers and also was an attempt to circumvent the corrupt PDS. The government is contemplating introducing direct cash transfer program in many cities and towns.
Raghubir Nagar, a resettlement neighborhood in West Delhi was selected as the first urban trial for giving cash instead of PDS rations. In 2011, households there received Rs. 1,000 ($18.41 USD) monthly in a female family member's bank account in lieu of rice, wheat, sugar and kerosene at subsidized rates.
Pro-Direct Cash Transfer Instead of PDS Ration
Individuals with “below the poverty line” (BPL) ration card are entitled to receive a certain amount of grains, sugar and kerosene per month. These items can only be picked up at the PDS shop, which many times is not open when it’s supposed to be. Also, supplies are often inferior quality and/or not full amount. Many supplies are siphoned off and sold on the black market. The Planning Commission estimates that 58 per cent of subsidized food grain does not reach the intended beneficiaries. A direct cash transfer frees recipients to shop at wholesale markets, obtain better quality food, and not be at the mercy of the PDS shop.
Poverty Ridden Opt for Cash Transfer over PDS (by Prasad Nichenametla, Hindustan Times)
Anti-Direct Cash Transfer Instead of PDS Ration
The National Federation of Indian Women (NFIM) is concerned that direct cash transfers will reduce transparency of the economy and that funds will be misused by other family members. On a wider economic scale, there is worry that without PDS, the government will have a surplus of the food grain that was allocation for distribution. And since the government buys the grain at a minimum price per year, with a surplus, food grain prices may crash.
Direct Cash Transfer is Unscientific (Deccan Herald)
Old Diet, New Recipe (by Sebastian P.T., Business Today)
Enact a Universal PDS
PDS is supposed to bring food and fuel to the poorest in the country. But India is unable to target the right households. In 2004-05 the National Council of Applied Economic Research (NCAER) and the University of Maryland found that only 48% of the poor had access to BPL cards while 31% of the non-poor households HAD access to BPL cards. One solution is a universal PDS to ensure that the subsidized food reaches to those who need it the most. A universal PDS would be revamped to distribute more nutritional grains such as millet instead of wheat and sugar.
India also faces rapid inflation on food prices. The week of February 6, 2010 food prices rose nearly 18%, making may daily items harder to afford. The Centre for Budget and Governance Accountability (CBGA) suggested that funneling affordable food grains via a universal PDS would bring down food prices.
Universal PDS Can Fix the Problem of Malnutrition (by Sonalde Desai, The Economic Times)
Is Universal PDS a Good Idea? (by Thiruvoipati Nandakumar, Indian Express)
The Task of Making the PDS Work (by Jean Dreze, The Hindu)
Universal PDS Only Way to Beat Hunger, Tackle Price Spiral? (by Subodh Varma, Times of India)
Sharad Pawar
Currently India’s Agriculture Minister, Sharad Chandra Govindro Pawar was Minister of Consumer Affairs and Public Distribution between May 31, 2009 and January 19, 2011.
Pawar was born on December 12, 1940 in Baramati, a sugar-producing region in Maharashtra’s Pune district. Pawar comes from a land-owning family. He is a member of the Maratha caste.
Pawar was first elected to the Maharashtra Assembly in 1967. He went onto become Maharashtra chief minister four times but never completed a full five-year term. Pawar has been elected to the Lok Sabha seven times and has been leader of the opposition once. He currently represents the Madha parliamentary constituency in the Lok Sabha.
Pawar is considered a shrewd political operative. In 1998, onion traders from Maharashtra starved New Delhi of onions, leading to a shortage. The crisis reportedly led to the ruling BJP losing the Delhi Assembly losing elections. An investigation by the central BJP government led to raids on Maharashtra warehouses, where traders where found to be hoarding onions. Pawar is rumored to have engineered the artificial shortage.
Pawar was a Congress party member till May 1999, when he formed the Nationalist Congress Party (NCP), a splinter faction. NCP has been part of the two Congress-led central governments in 2004 and 2009. Though it was expected to merge with the Congress, it has so far stayed independent, a part of Pawar’s political strategy to extract more mileage, say observers.
He also has vast administrative and legislative experience. From 2004 onwards he has been a Union Minister of Agriculture and Consumer Affairs and Public Distribution with a short break in May 2009 when he was again elected and continued to hold the same portfolios. In a minor reshuffle of the Union cabinet in January 2011, he lost the Consumer Affairs and Public Distribution ministry but was given Food Processing Industries.
Pawar continues to have active business and political interests in Maharashtra. In the Congress-NCP coalition government in Maharashtra, his nephew is the deputy chief minister while his only child, Supriya Sule, is a Rajya Sabha member.
Widely respected, Pawar has never been caught in a corruption scandal though there have been many unsubstantiated allegations. He has managed to maintain a clean record despite having friends and family members with alleged wrongdoings.
In November 2011, Pawar made headlines when he was slapped by Harvinder Singh, who previously slapped former Telecom Minister Sukh Ram. Singh became a minor Internet celebrity after the release of the Chamaat Song (Slap Song). The tune borrowed the music from a popular Tamil film song and remixed to celebrate Singh’s assault.
Sharad Yadav
Sharad Yadav served as the Union Minister for Consumer Affairs, Food and Public Distribution from July 01, 2002 to May 15, 2004. He is a member of Janta Dal United and represents Madhepura constituency of Bihar in the current Lok Sabha. Apart from being the food minister, he was Union Minister for Civil Aviation and Union Minister for Labor.
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