The Political Economy of Food Subsidy in India

Indian parliament is getting ready to debate the National Food Security Bill that would be the single biggest poverty alleviation programme, costing about 1.5 per cent of India's gross domestic product. There has been a fierce debate leading up to the drafting of the bill and subsequent modifications. This article first points out the salient features of the Indian economy to give context to assess the current debate. In particular, it gives a detailed picture of the grain market in India and the important role played in it by the central government. It traces the path of the bill from its genesis through the subsequent debate and political process. The article identifies the key players in the debate and the role they have played in shaping the provisions in the latest draft of the bill. At the end, the authors speculate about likely food security outcomes in India