Food cards in Russia: reasons and goals for introduction

2024 Author: Henry Conors | [email protected]. Last modified: 2024-02-12 02:41

The concept of food aid being developed by the government in the Russian Federation introduces food cards. The Prime Minister of the Russian Federation said that food cards, as one of the types of support for citizens, have both advantages and disadvantages. The main directions of the proposed program are the support of regional agricultural producers, targeted assistance to the socially unprotected population of the country.

What is food aid

The program is a state support, which is aimed at helping certain segments of the population. Assistance will be provided under the guise of a certain set of food products or the amount of money that can be spent on the purchase of these products.

Food cards for Russians will provide an opportunity to provide assistance to Russian agricultural producers through market methods. Supported by a stabledemand for their products, there is an opportunity for further improvement. It is also one of the methods of import substitution.

Russia is preparing for the return of ration cards

In April 2015, the government presented a model food card system. They are intended for those citizens who have the right to subsidies from the state. The Ministry of Industry and Trade believes that food cards will support not only the socially unprotected segments of the population, but also the state, mainly regional agricultural production. The decision to introduce food cards into everyday life was formed based on the experience of world powers, where they have been successfully used for a long time.

How ration cards work

Although the introduction of this innovation is expected in 2017, the concept of ration cards is already known:

1. A bank card is issued to a family that is considered socially unprotected.
2. Every month, funds from the budget are credited to it.
3. It will be impossible to withdraw funds, they can only be paid in certain stores and for a certain period of time.
4. Introduction of ration cards will only apply to products with a short shelf life. This is planned to prevent accumulation. This includes foods such as meat, poultry, eggs, milk, vegetables and fruits.
5. The exact amount of funds transferred to the card is not yet known. The department believes that the amount will depend onsubsistence level established in the region, family income level, all social deductions, food cost ratio.

Conditions for receiving food cards

There are a few things you need to do to get food cards for the poor. You will need to submit an application to the executive branch in the region of residence, collect a package of necessary documents, and pass an interview. If the answer is positive, the applicant will be issued an electronic grocery card, which will receive funds. Or you can connect an existing one by signing an agreement with your bank.

To mitigate the risk of dependency, the unemployed will be required to get a job within the agreed time frame.

Probably, Sberbank of the Russian Federation will participate in the implementation of the designated program. The "Product Card" program will require 240 billion rubles at the very preliminary calculation

Existing realities of life

There is one very serious obstacle to the implementation of the program - the state does not have financial resources. Of course, the entire program will be implemented by the state. But since in 2015 the country's budget was adopted with a deficit of 2,680 million rubles, and on May 1, 2015, the debt of the regions went beyond two trillion. rub., it is difficult to imagine an easy and quick implementation of the food card program.

Existingshortcomings

Despite the lack of the necessary funds in the federal budget for the implementation of the program, there are several issues that the Ministry of Industry and Trade cannot solve for a long time. Food cards and their implementation imply a clear scheme for choosing producers, which still does not exist. Secondly, there is no clear mechanism for checking the required quality of goods.

Expert opinions

For experts, one main question remains open: what is more important for the state - support for local producers or well-fed low-income citizens?

Borisov A., Chairman of the Chamber of Commerce and Industry of the Russian Federation for the development of the consumer market, believes that the introduction of cards will change the system of support for manufacturers. In this case, farmers will be able to receive funds through increased demand and its stimulation, and not directly.

Vostrikov Dm. (Rusprodsoyuz) approves food cards. He believes this will help local production better than price regulation.

Krupnov Yu., head of the Supervisory Board of the Institute of Demography and Regional Development, believes that this program is a gift that can stimulate local agricultural producers and the Russian economy. He believes that Russia is preparing for the return of ration cards and that this will solve most of the problems related to food safety on a country scale. The program, in his words, is a giant food orderfor agricultural producers.

Mamikonyan M., president of the Meat Union, says that in the world this practice of helping the poor is the strongest support for local producers. But he doubts that in the realities of Russia, this support will be insignificant. The President believes that this program is intended for a limited circle of consumers, and the funds allocated on a monthly basis will be small, it is unlikely that they will buy meat - a rather expensive product.

Reasons for ration cards

The government assures that this program is in no way related to food shortages. According to them, food cards in Russia and the assistance provided on them will develop for several reasons:

1. The rules of Russia's accession to the WTO oblige our country to reduce the amount of direct assistance to agricultural producers under the guise of various subsidies, subsidies, preferential loans, etc. In addition, WTO rules may allow the support of local agronomists through domestic food assistance in the implementation of the Green Box program.
2. Today, the number of citizens who are en titled to food cards is increasing in the country: these are those who are below the poverty line and the poor. Over the past 8 years, their number has grown to 21 million people. These are citizens who need state support.

Steps of introduction of food aid

According to preliminary data, the launch of the program will begin in 2017. To date, the amount that will be transferred to the card will be 1400 rubles. monthly. It is assumed that products under the program can be purchased at separate counters in retail chains. It is unlikely that social stores will be built separately for this program.

The next phase will begin in early 2018. It consists in the opening of social canteens, where you can get hot meals by presenting the appropriate card.

What the implementation of the program entails

The return of ration cards, according to the government, is only well-intentioned.

In order to support local producers, changes have been made to the law on trade. These amendments eliminate any fees from suppliers and reduce settlement times. Today, retail chains can delay settlements with small farms for up to a month and a half. In other words, big business is credited for free at the expense of small business. That is, theoretically, the entrance to the retail chains will be opened for local small agricultural producers, the stimulation of which is implied by the program for the introduction of food cards.

Results

The ration card program includes:

• support for local manufacturers;
• support for the poor;
• trade improvement.

In 2016 food cards in Russia will be available to:

• mostpensioners who are below the poverty line, taking into account the average pension for 2015;
• single mothers;
• unemployed citizens;
• ethnic groups such as the peoples of the Far North, Tajiks, Roma.

To receive cards, they need to apply to the relevant authorities with an application and a package of documents.

In addition to the introduction of food cards in 2017, in 2018 it is planned to introduce a program for preferential meals, which will provide the poor with the opportunity to get lunch at a canteen/cafe for free.

Most experts in this field believe that ration cards are the most important and effective project of the Russian Federation. They will provide an opportunity to support not only local production and consumption, but also the consumer market and the economy as a whole. The most important thing now is that this program of assistance to socially unprotected citizens should pass without any violations.