Here’s a story that won’t make the 9 pm news. As per reports in a few regional language newspapers (yes, they still have The Spine), the Union is proposing an increase in the prices of rice, wheat and cereals sold through the National Food Security Act (NFSA) by Rs.7 per kg for Priority Households (PHH).
Apparently, NITI Aayog has even recommended that the Food Ministry increases the price for sale to the poorest of the poor through Antyodaya Anna Yojana by ₹ 1 per kg. The Ministry is said to have put this up for consideration by the Union Cabinet.
That brings me to the subject of the column this week: Food Insecurity.
2022 marks the second year since the Pradhan Mantri Garib Kalyan Yojana (PMGKY), to provide additional food subsidies to the poor, was introduced. The scheme comes in six-month cycles and was extended for the sixth time in March with its term ending this month.
Access to adequate food has not improved since then, and the scheme should be extended. Let’s begin with inflation. The retail inflation rate continues to remain at 7 per cent, far above the RBI’s warning threshold. Consumers are paying more for food products. Rural inflation remains higher than in urban areas even last month. Alongside this, industrial output has fallen, hinting at a lack of consumer demand and a fall in employment. And let’s not forget the rupee is in the doldrums vis-a-vis the dollar.
