Tuesday, September 23, 2014

Subsidies to Improve India's Food Security


       With the ever-growing population in India, providing food for the incredible numbers of people has become an even greater problem. Approximately one year ago, India's government passed legislation that would provide grain to 67% of the population at a significantly lower price. By subsidizing wheat and rice, the government would be able to feed the thousands of hungry people. However, the real problem comes from the fact that the cheaper food does not always reach those that actually need it. The Forbes article by Megha Bahree states the in 2012, about 35% of the wheat and rice were "leaked in the system." This is down from the 55% that was leaked in 2005, but it still shows that a significant amount of usable food did not reach its destination. Technology that tracks food grain delivery has been one of the greatest causes for improvements in leakages in many states, but in others, corruption still remains. While the legislation had overall positive reactions, many people critisized how not everyone was included in the group that receives lower priced grain, including Koraput. In this state, 39% are excluded from receiving food even though 88% are considered "multi-dimensionally poor" (Aljazeera).

       After the subsidies were implemented several months ago, India now faces challenges with the World Trade Organization about producing grain at such a low price. Law Minister Ravi Shankar Prasad "highlighted India's food security concerns which must not be construed by the developed world as a stumbling block" (Business Standard). India's food security is steadily improving despite the growing population, but they still have many steps before they are able to eliminate undernourishment in the country.

http://blog.thomsonreuters.com/index.php/tag/food-security-bill/ 

http://www.forbes.com/sites/meghabahree/2013/09/02/how-bad-really-is-indias-new-food-security-bill/
http://www.aljazeera.com/indepth/opinion/2013/11/food-security-india-not-doomed-after-all-20131110572633972.html
http://www.business-standard.com/article/pti-stories/germany-respects-india-s-concern-on-food-security-114091800655_1.html

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