In a “surprise move”, Prime Minister Manmohan Singh has decided to set up an expert panel headed by C. Rangarajan, who heads his economic advisory council, to look into the Sonia Gandhi-led National Advisory Council’s proposals on the draft National Food Security Bill.
However, while a section within the NAC which too has several experts was wondering over the PM’s decision to appoint another panel, some others felt that it appears to be an attempt to reconcile the differences within the government on the issue.
The NAC which met here today under the chairmanship of Mrs Gandhi had formally communicated its proposals on the food security bill to the PMO after it was finalised on October 23. The decision to form a panel under Mr Rangarajan was announced to the NAC members on Friday.
The food ministry has serious reservations on the large quantity of food grains that would be needed for the new proposed legislation to be implemented while the Planning Commission has expressed concern over the huge cost of implementing the proposed act.
The food ministry has estimated that procurement will have to be increased substantially from the current 57 million tonnes to around 67 mt in order to meet the NAC’s recommendations on the draft Bill. According to the Planning Commission, an additional food subsidy of around `23,000 crore, up from the current `58,000 crore, would be initially required to implement the NAC proposals on the draft Bill.
The high-powered Rangarajan panel includes chief economic advisor Kaushik Basu and Planning Commission deputy chairman Montek Singh Ahluwalia. It is expected to submit its report by December 20.
By then, the NAC working group on food security, which made a presentation on the draft bill prepared by it on Friday, will further deliberate on the issue. Sources said the National Advisory Council hopes to finalise the draft bill during its next meeting on December 21.