The cheap rice scheme, which the Congress had promised in its manifesto, would cost the government Rs 4,300 cr a year.
Immediately after taking oath as chief minister on May 13, Siddaramaiah had announced the scheme would be implemented from June 1. The government had to postpone the implementation twice, as it could not source additional rice from the Centre at Rs 5.7 a kg, the rate at which the food ministry supplies rice to the state under the BPL quota.
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The new scheme would benefit 97,35,059 families and the government requires 2,77,254 tonnes every month for the scheme.
The Union food ministry rejected the Karnataka government's demand for the supply of an additional 129,254 tonnes at BPL prices. Presently, the state gets 148,000 tonnes every month under the PDS.
"The central government could not meet our demand after agreeing to do so. The supply would be received this month, and we will definitely implement the scheme from July 10," Siddaramaiah had said.