With an aim to introduce the much-awaited Food Security Bill in the monsoon session (July-August) of Parliament, the food ministry has started parleys to bridge the gap between an expert panel appointed by the Prime Minister and the National Advisory Council (NAC).
To make foodgrains available, the food ministry has favoured distribution of cash subsidy in place of grains, when adequate quantities are not available. To cut the subsidies, it has not agreed to NAC’s recommendations that the price for the consumers should be maximum 50 per cent of the Minimum Support Price (MSP). “Our party and the government are committed to see that the entitlement of food is made available but very high subsidy burden is also not desirable. Pricing foodgrains at just 50 per cent of MSP will not make it viable. We have to link it to the MSP at a higher level,” Minister of State (Independent Charge) for Consumer Affairs, Food and Public Distribution K V Thomas told Business Standard.
The food ministry is also not keen to introduce dual pricing for the priority and general household.
An empowered group of ministers (EGoM) is expected to meet soon to consider various views on the Food Security Act.
The panel of experts is headed by Prime Minister’s Economic Advisory Council Chairman C Rangarajan, while Congress President Sonia Gandhi heads NAC.
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According to an estimate of the food ministry, the subsidy burden will rise up to Rs 1,14,600 crore if the scheme is rolled out for the entire population. “It will also increase the procurement of foodgrains which is currently at around 30 per cent. If the government procures more, we will also need to consider its impact on the open market,” Thomas said.
While Thomas listened to the arguments of the Sonia Gandhi-led NAC, he also questioned the council’s prediction that the offtake of foodgrains would be a maximum of 90 per cent. “How can anyone predict this? If people find they are entitled for subsidised foodgrains, there may be more interest to pick up foodgrains under the scheme.”