WELCOME TO PRESENTATION ON

FOOD SECURITY TO THE POOR

The reason

 The availability of rice under PDS is on an average 15 kg/month per family  The requirement of rice for an average size family in rural area is 50 kg/month  The gap is on average 35 kg/month  The 35 kg/month is used to be procured from open market  2/3 rd of the food security of the poor becomes vulnerable and subject to market fluctuations

The coping mechanism

 The stream of income of the poor is not regular-it is fluctuating on day basis  The expenditure for food for each day is more or less the same  The negative gap is being met by the poor either through borrowing or obtaining the food grains on credit basis or adjusted with low intake  The sufferers in the family are women and children

Objectives

 To attempt to minimise the “Food Gap” in POP and the Poor  To facilitate for the emergence of ‘ Total Food Security ’ to the target poor at household level  To minimize the rate of exploitation in consumption expenditure made by the poor.

 To provide access to good quality and accurate quantity of rice by the target poor through cheaper rates  TO correlate the nutritional improvement in the pregnant women and children with food security initiative

Rice Credit Line-Reduction in Food Gap  Identifying the gap between the actual requirement of rice per month for each house-hold and the rice availability from FP shop  Consolidating the requirement at VO level  Provision of funds from the CIF @ 90 % of the required funds – 10% being the beneficiary contribution

The Cyclical Process in Rice Credit Line  Procurement of required rice on monthly basis by the VO from open market  Distribute it to SHG members through SHGs  Recovery of money through 3 or 4 installments by the VO from SHGs in the same month with little profit margin

The Process

 Sitting with the members of each SHG  Analyse the consumption pattern  Arriving at the rate of losses in respect of purchase of each commodity  Find out of the requirement of each member  Implementation in few VOs in each Mandal.

The facilitation support

 Training the VO Executive Committee  Training the CC and Activists in pilot villages  Facilitating the emergence of purchase committee, monitoring committee and recovering committee in each VO.

 Introduction of Books of Accounts.

Implementation process-the collection of indent

  Requirements of the VO will be arrived.

 Initially, requirement of each member in each SHG will be collected.

Proposal will be sanctioned and the VO will be SPIA.

 The purchase committee procures the rice by conducting market survey in respect of quality and the price of the commodity.

Implementation process-the distribution

 The distribution committee will distribute to SHG leaders.

 The SHG leaders will distribute to each member on the same day.

 At every stage of distribution, the acknowledgements will be collected.

Time line

 First of every month SHG requirement is collected,  2 nd to 4 th of every month VO level requirement is collected,  5 th to 10 th of every month, distribution of rice from the mill to the VO, VO to SHG, SHG to members.

Time line (contd..)

 10 th every month, last date for distribution to the last member and collection of 1 st installment.

 17 th  24 th 2 nd , 3 rd installment, installment ,  30 th / 31 st final installment.

The basic model-rice centered

  Only rice will be included Recycling will be for every month or for every six months  One month-procurement from open market or by procuring the paddy  Six months- procurement of paddy, mill it in local rice mill and distribute to SHGs for every six months

The Comprehensive model

 The commodity basket includes five commodities- rice, red gram, tamarind, edible oil and red chillies  It will be either one month model or three month model or six month model  In chenchu and other tribal areas the Food Security Basket will comprise 25-30 commodities-all house hold requirements

Procurement

   

If rice or paddy, it is at VO level In respect of red gram, tamarind, edible oil and red chillies it will be at VO level or at MS level or at Area level At VO level and MS level procurement committees are positioned out of the VO-EC or MS-EC as the case may be At AREA level the procurement committee is constituted with two members from each MS within that MS

Recovery

 If it is monthly recycling, the recovery will be completed from the members within 3 weeks  If it is 3 month/6 month model, recovery will be completed within 5 months  In monthly model, the instalments will be on weekly basis  In 6 monthly model the instalments will be on monthly basis

Funds

 The corpus of the SHG  The CIF from the VO/MS  The cash credit limit by the bank to the VO

Inclusive approach

   Within the SHG, the food security plan is prepared by the SHG taking each member’s requirement , particularly the POP- both quality and quantity and the nature of food grains The repayment instalments will be fixed as per the convenience of the members The small loan provision is available in the SHG to the member in case she is not able to repay that instalment 

A poor women in Dondapadu Village of Thulluru Mandal Cooking Rice

The progress

 Total no of VOs – 27,000  No of VOs covered – 6427  No of SHGs covered –1,63,241  No. of house-holds covered – 17,67,437  Quantity of rice – 61,860 MT/month -- 742,323 MT/year  Total turnover per year -- 817 crores  Total cost of the project – Rs.68 crores

Sl. N o.

.(1) 1

ANALYSIS OF "FOOD GAP" IN POOREST OF THE POOR AND THE POOR HOUSE-HOLDS

Family members Consumption Name of the House Hold .(2) Kalva China Mariamma Adu lts .(3a)

3

Chil dren .(3b)

3

per day requi reme nt .(4)

2

Mont hly requi reme nt .(5)

60

Before RCL per day .(6a)

1.6

per mont h .(6b)

48

Defi cit (in Kgs ) .(7)

12

% of defi cit After RCL per day per mon th .(8)

20

.(9a)

1.8

.(9b)

54

Def icit (in Kgs ) .(10)

6

% of deficit .(11)

10

2 Kalva Peda Mariamma

3 2 1.8

54 1.5

45 9 16.

7 1.7

51 3 5.6

3 4 5 6 Kukkamudi Jyothi Macherla China Venkaiah Kalva Seshamma Dasari Masthanamm a

3 4 3 4 3 4 3 3 2 3 2 3 60 90 60 90 1.6

2.6

1.6

2.6

48 78 48 78 12 12 12 12 20 13.

3 20 13.

3 1.8

2.8

1.8

2.8

56 84 54 84 6 6 6 6 10 6.7

10 6.7

Sl. No .

.(1) 1 2

Name of the House Hold

.(2)

Source of Supply of Rice to the Poorest of the Poor & the Poor Before RCL Source of Supply After RCL Source of Funding Before RCL After RCL FP shop s

.(3a)

Kir an a Sh op s

.(3 b)

Pa ddy Mill ing

.(3c )

Tot al

.(3d )

FP shops

(4a)

Kira na Sho ps

.(4b)

Pa ddy Mill ing

.(4c )

RC L

.(4 d)

To tal

(4 e)

Wa ges

(5a)

De bt

(5b )

W ag es

(5 c)

De bt

(5d )

RCL

(5e) Kalva China Mariamma Kalva Peda Mariamma

20 16 28 29 0 0 48 45 20 16 0 0 0 0 34 35 54 51 -

3 4 5 6 Kukkamudi Jyothi Macherla China Venkaiah Kalva Seshamma Dasari Masthanam ma

25 30 26 27 23 48 21 51 0 0 0 0 48 78 47 78 25 30 26 27 0 0 0 0 0 0 0 0 31 54 28 57 56 84 54 84 -

The Impact

 Reduction in “Food Gap” and incre3ase in food intake by the poor     Reduction in price Increase in real income Increase in quality Ensuring “Total Food Security”  Caring for the aged, destitutes and pregnant women  Capital formation in VOs and MSs