Don’t miss the latest developments in business and finance.

Food act provision could now entitle one to allowance if grains are not received

A rough calculation shows a beneficiary will get around Rs 80.60 per month for not getting the prescribed 5kgs

Sanjeeb Mukherjee New Delhi
Last Updated : Apr 27 2015 | 1:53 AM IST
The National Food Security Act , passed during the tenure of the earlier government, gives a legal entitlement for cheap grain to almost 67 per cent of the population

If a beneficiary under the National Food Security Act does not get his or her entitlement, then he/she would get an allowance of 1.25 times the difference between the government’s Minimum Support Price (MSP) for that grain and the prescribed rate under the law. This is according to the recent rules framed by the Centre in this regard.

The current MSP of wheat is Rs 1,450 a quintal and so, an individual beneficiary will get Rs 80.60 a month for not getting the entitled five kg. The allowance will have to deposited in the bank account or given to him.

“Suppose a beneficiary has not received three kg of wheat in a month due to non-availability at the ration shop. The state government will have to ensure he or she gets the allowance as laid down in the rules,” a senior official said.

The Act, passed in the tenure of the earlier government, gives a legal entitlement for cheap grain to almost 67 per cent of the population.

All entitled beneficiaries will get in a month as much as five kg of wheat, rice or coarse cereals at Rs 3 a kg for rice, Rs 2 a kg for wheat and Rs 1 a kg for coarse cereals. Once implemented, the Act is expected to cost the exchequer about Rs 130,000 crore a year.

Around 11 states and union territories have implemented the Act and others are in the process of doing so. The Centre has extended the deadline several times.

The Centre has said a nodal officer will have to verify at the end of each month the amount of grain available in the ration shops, the status of supply to entitled beneficiaries and the reason why grain could not be supplied.

“The food security allowance in lieu of grains will have to given to the beneficiary by the end of the third week of the month for which grains could not be supplied to him.” However, a beneficiary will be eligible for the allowance only if he visits the ration to claim the entitlement.

The nodal officer will also have to register a complaint with the District Grievance Redressal officer against a ration shop which has not supplied the foodgrains.

Some weeks earlier, the Centre had decided to share half the expenditure that states would incur on transport of foodgrain from Food Corporation of India depots to ration shops and also the commission to shop owners.

Also Read

First Published: Apr 27 2015 | 12:40 AM IST

Next Story