After initial hype, State Govt now mum on NFSA

Imphal, September 19, 2014: After all the hype and hectic preparations towards implementing the Government of India’s ambitious flagship programme, National Food Security Act (NFSA), with a view to eradicate hunger from all over the country, the Government of Manipur has gone into deep slumber on account of the huge amount of money it must expend once NFSA is implemented here too.

According to an official source in CAF&PD Department, the State Government would be compelled to expend in terms of crores in a month once NFSA is implemented in the State.

With the State’s financial condition not so sound, the Government is facing hard times in its efforts to dish out the requisite fund for implementation of NFSA in Manipur. In the backdrop of this helpless situation, the State Government has gone completely silent on NFSA.

In case the NFSA should be implemented compulsorily, the State Government would be constrained to seek Central assistance.

At present, the State’s monthly allocation of rice is 78860 quintals. Profits earned by agents is Rs 65 per quintal of rice. This profit is not given by the Government but is earned by selling rice to the public at a higher price.

The profit margin is similar in the case of sugar too. Sugar agents get a profit of Rs 65 per quintal of sugar by selling sugar to people at a higher price. The State’s monthly allocation of rice is 17630 quintals.

Once NFSA is implemented in the State, agents would get a profit of Rs 51,25,900 out of the State’s monthly allocation of 78860 quintals of rice and another Rs 11,45,950 from 17630 quintals of sugar.

In the case of NFSA, agents would not be allowed to hike prices of either rice or sugar if the State Government refuses to pay profits entitled to them.

In the event of hiking prices of rice and sugar by agents and if there are any complaints, officials concerned may face an unenviable situation of going to jail.

It is still unclear who would pay the transportation charge of NFSA commodities which are distributed to beneficiaries from door to door.

Transportation charge as fixed by the FCI at the local market rate is Rs 1.54 per quintal. The NFSA authorizes beneficiaries to lodge complaints if they do not get either rice or sugar within the stipulated period and they should be paid the exact amount the beneficiary should spend in purchasing the same items from markets.

As such, implementation of NFSA would entail a huge expenditure to the State Government. That is why, the State Government remains ambivalent.

Notably, the Central Government has already advised all State Governments which are still unable to implement NFSA to enforce the Public Distribution System which is already in force.

Source: The Sangai Express