According to news reports, the Prime Minister recently chaired a meeting with ministers to discuss an alternative plan (“Plan B”) for the National Food Security Bill, 2011 (hereinafter “Bill”).  The Bill is currently pending with the Standing Committee of Food, Consumer Affairs and Public Distribution.  It seeks to deliver food and nutritional security by providing specific entitlements to certain groups.  The alternative proposal aims to give greater flexibility to states and may bind the centre to a higher food subsidy burden than estimates provided in the Bill.  It suggests changes to the classification of beneficiaries and the percentage of the national population to be covered by the Bill, among others. Classification of beneficiaries The Bill classifies the population into three groups: priority, general and excluded.  Individuals in the priority and general groups would receive 7 kg and 3 kg of foodgrain per person per month respectively at subsidized prices. Plan B suggests doing away with the priority-general distinction.  It classifies the population on the basis of 2 categories: included and excluded.  Those entitled to benefits under the included category will receive a uniform entitlement of 5 kg per person per month. Coverage of population Experts have suggested that the Bill will extend entitlements to roughly 64% of the total population.  Under the Bill, the central government is responsible for determining the percentage of people in each state who will be entitled to benefits under priority and general groups. Plan B suggests extending benefits to 67% of the total population (33% excluded), up from 64% in the Bill.  The Ministry has outlined two options to figure out the number of people in each state that should be included within this 67%.  The first option envisages a uniform exclusion of 33% in each state irrespective of their poverty level.  The second option envisages exclusion of 33% of the national population, which would imply a different proportion excluded in each state depending on their level of prosperity. The Ministry has worked out a criterion to determine the proportion of the population to be included in each state.  The criterion is pegged to a monthly per capita expenditure of Rs 1,215 in rural areas and Rs 1,502 in urban areas based on the 2009-10 NSSO survey. Thus, persons spending less than Rs 40 in rural areas and Rs 50 in urban areas per day will be entitled to foodgrains under the alternative being considered now. Financial estimates Newspaper reports have indicated that the revised proposal will add Rs 7,000 to Rs 10,000 crore per year to the current food subsidy estimate of Rs 1.1 lakh crore.  According to some experts, the total cost of the Bill could range anywhere between Rs 2 lakh crore to Rs 3.5 lakh crore (see here and here).

There are a little over 4000 MLAs across all states in India.  For the citizen, a law passed by his state legislature is as relevant and important as one passed by Parliament.  And MLAs also have no research support available to them to understand and reflect on policy issues before voting for them in the state assembly.  To make matters worse, the sittings in many state assemblies are abysmally low as can be seen from this graph showing some states. For a while now, several MPs have been urging PRS to initiate some work with MLAs.  We started a Policy Guide series some months ago -- essentially a 2-page note on policy issues of contemporary relevance that would be useful for MLAs.  We started sending these out to MLAs in several states, and some MLAs called PRS back for more information and research. As a way to increase the engagement, PRS decided to hold a workshop for MLAs.  For this, we partnered with Indian School of Business, Hyderabad, and held our first workshop for MLAs from Jan 3-6, 2011.  In the first edition of the workshop, we had 44 MLAs participating from a dozen states across India.  The response was overwhelmingly positive (see short videos of MLA feedback here), with requests from MLAs to hold more such workshops for other MLAs as well.  Several also wanted longer duration workshops on important policy issues.  We see this as a small beginning for a sustained engagement with our MLAs.