INDIA’S NEW FOOD SUBSIDIES WILL MEAN LOWER SUBSIDIES ELSEWHERE

NEW DELHI – India’s Government this week issued an Executive Order approving its Food Security Bill – a framework that assures subsidised food grains to eligible citizens, covering around two-thirds of the population. The Order awaits passage into law at the Parliament’s upcoming session beginning July 26. Once passed, addressing infrastructure bottlenecks will be a key for successful implementation of the Bill. It is currently budgeted at 0.8% of GDP for FY14 (year ending March 2014).