[Manifesto] Free Food in India

ORIGINAL LINK : https://www.sedaily.com/NewsView/29X4R4AHWS

“The BJP government has decided to extend the free food distribution for 800 million citizens for another five years. Your interest and blessings have been a great strength in making this decision.”

On December 4, Indian Prime Minister Narendra Modi announced at a campaign rally in Durg, Chhattisgarh, that the government’s free food program, which was due to end this year, would be extended. The Modi government had previously announced the world’s largest food assistance policy on March 26, 2020, providing 5 kilograms (approximately 11 pounds) of wheat or rice free of charge each month to citizens struggling due to the COVID-19 lockdown. This policy, based on the National Food Security Act (NFSA), was initially implemented for three months but was repeatedly extended and was scheduled to end this December.

The decision to extend this program, which costs approximately 2 trillion rupees (approximately $26.7 billion) annually, is believed to be largely influenced by the upcoming state assembly elections in five states including Chhattisgarh this month and the general elections in April and May next year. It is said that Prime Minister Modi, who is aiming for re-election, has introduced this popular policy with voters in mind. In fact, many voters who supported the ruling BJP in the election held earlier this year in Uttar Pradesh, the most populous state in India, were beneficiaries of the free food program.

However, there are also significant concerns about the side effects of this popular policy. India’s projected fiscal deficit for this year is relatively stable at about 6.4% of GDP, but the free food distribution over the next five years is expected to worsen the fiscal situation. Moreover, the government’s purchase of wheat and rice is expected to hinder exports for the time being. India, the world’s largest exporter of rice and the second-largest producer of wheat, has banned the export of wheat since May last year and the export of non-Basmati rice since July.

Next year is a year filled with major global elections. With the presidential election in Taiwan in January, the presidential and general elections in Indonesia in February, the presidential election in Russia in March, and the U.S. presidential election in November, it is expected that nationalistic policies and popular policies that stimulate voters will prevail. Voters in our country, who are facing a general election in April, should not be swayed by the ‘populist vote-buying’ of the political arena.