*Head, Department of Economics, S.K.Somaiya College of Arts, Commerce & Science, Vidhyavihar, Mumbai-400077, India
Online published on 21 September, 2017.
The introduction of Food Security bill has received mixed response. While the Government sources project it as a mode to insulate poor from adverse impact of inflation with a justification from empowerment perspective, scholarly views are pinpointing otherwise. The rationale behind 'food for all' concept is the entitlement of the poor in a growing economy backed by legal enactment. The law brings 63.5% of the country's population under its ambit. However, lot of apprehension has been raised on the possibility of the same. Considering the magnitude of coverage, the economic feasibility and financial viability of Govt obligation brings in doubts. This paper analyses the supply and demand side of the supporting mechanism prevailing in the country by throwing light on the procurement scenario and the reforms in public distribution system. An examination of pricing impact on fiscal commitment of Government, pricing policy of procurement vis-a-vis income transfer and the cost effectiveness of the income transfer, the impact on the interstate financial relations etc have been undertaken to understand the complexities of PDS. The concluding remarks recommend the future course of actions necessary to combat poverty from long term perspective.