India’s national food security act (NFSA): fiscal assessment and implementation challenges

Abstract

National Food Security Act, 2013 aimed at providing food security to rural and urban poor has been criticized for its high fiscal burden, anticipated problems associated with enhanced requirement of food-grain procurement and leakages associated with the Public Distribution System, the proposed implementation channel. However, the supporters of NFSA argue the fiscal burden is only marginally higher and implementation issues can be overcome with reforms. This research critically examines the current debate on NFSA in terms of its economic impacts. The key challenges for implementation are discussed in light of pros and cons of the existing PDS with suitable reforms vis-a-vis the conditional cash transfers approach.