Fundamental flaw in food security bill

The design of policy in the revised version of the food security law proposed by the food ministry — cabinet approval for which was deferred on Monday — will make a bad idea worse. It is even less concerned about the imperatives of fiscal sustainability and the needs of the Indian population. Providing foodgrain for 75 per cent of the rural population and 50 per cent of the urban population at fixed subsidised prices will not only place a huge burden of expenditure on the government, as pointed out by the finance ministry, it will also distort Indian agriculture even further.

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