3.4.2. Critical Evaluation of NFSA

1. Cost Of Implementation: It will take around Rs 1.3 lakh crore (1.3% Of GDP at current market prices) to provide annual food subsidy under NFSA. Critics believe that other entitlements, maternity benefits, transportation, grievance redressal and other associated costs will make a huge cost burden of around 6.8 lakh crore over the 3 year period 2013-14 to 2015-16.

2. Risk of Leakages: NSSO data shows a huge leakage of 37% from PDS in 2011-12. Although it is unacceptably high but is declining as compared to 44% in 2007-08 and 54% in 2004-05.

3. Identification Of Beneficiaries: Identification is an inherent problem in targeted schemes. It amounts to a huge exclusion error in India, mainly because of prevalent illiteracy and corruption. However a Socio Economic Caste Census (SECC, 2011) has been done and its reports are in public domain now. Criteria can be find out to select beneficiaries, or to keep out a section of people who do not need such subsidies.

4. Problems In Procurement CACP argues that production has to go up by an extra 25 MT to meet the requirements of NFSA. But, analysts say that since our production and procurement of cereals has been increasing continuously since 2000-01, procurement shall not be a problem. Also, CACP has included just wheat and rice in its estimation, coarse cereal has not been included.