To improve offtake of foodgrain allocated to states under the targeted public distribution system (PDS) and other schemes, the food ministry has mooted a proposal to sell wheat and rice to below poverty line (BPL) families at Rs 2 and Rs 3 per kilogram, respectively.
The proposal is in line with provisions made under the draft Food Security Bill, wherein wheat will be sold to priority segments of the population at Rs 2 per kg and rice at Rs 3 per kg. The priority segment as mentioned in the food Bill are similar to the current classification of below poverty line (BPL) families. At present, wheat to BPL families is sold at Rs 4.15 per kg and rice at Rs 5.65 every kg.
The ministry has also proposed to expand the coverage of BPL families from 65.2 million to 81 million as mentioned in the draft food Bill. The proposals have been mooted for immediate implementation without waiting for formal clearance of the Bill from Parliament.
“As we already have adequate stocks of grains and lifting from states is not satisfactory largely due to high price, we have mooted the proposal to sell grains at a price proposed in the draft Bill, without waiting for a formal clearance from Parliament,” a senior food ministry official said. This would also prepare the ground for smooth transition as and when the Bill becomes a law.
The official said the food ministry had already had preliminary meetings in this regard with finance ministry and agriculture ministry officials to analyse the revenue and other implications of the proposals. The government’s food subsidy Bill is expected to rise to almost Rs 95,000 crore after the draft law is implemented because of higher procurement and lower sale price.