Economics

Food security system has two components -
(A) Buffer stock (B) Public Distribution System
(A) Buffer stock : It is stock of food grains, namely wheat and rice procured by the government through Food Corporation of India (FCI).
FCI : The food corporation of India was set in 1965. The main function of FCI are -
(A) To procure food grains directly from the farmers.
(B) To store the food grains
(C) To distribute the food grains to various agencies.
Minimum Support Price : The farmers are paid a pre-announced price for their crops. This price is called minimum support Price (MSP). The MSP is declared by the government every year before the sowing season to provide incentives to the farmers for raising the production of these crops. The purchased food grains are stored in granaries. This buffer stock is created by the government. This is done to distribute food grains in the deficit areas and among the poorer strata of society at price lower than the market price also known as Issue Price. This also helps to resolve the problem of shortage of food during adverse weather conditions or during the period of calamity.
(B) Public Distribution System : Supply of essential commodities to the people through government agencies is known as public distribution system. It is used as an important activity of the state to ensure food security to the people, particularly the poorer ones. Under PDS the central government has assumed responsibility for supply of essential commodities like wheat, rice sugar, ediable oils and kerosene. This schemes is implemented with the help of the government in states and union territories. There are more than 4.55 Lakh fair price shops to distribute the essential commodities. The prices of the goods sold through PDS in fair price shops is less than that of the market price. The cost of this price difference is borne by the government. This amount is known as subsidy.
Types of ration card :
1. Antyodaya cards for the poorest of the poor.
2. BPL card for those below poverty line.
3. APL cards for all other.
Three important food intervention programmes :
(A) Public distribution system.
(B) Integrated Child Development Services (introduced in 1975)
(C) Food for work (Introduced in 1977-78)