The state food subsidy bill projected for the current fiscal stands reduced by more than 50 per cent.
The budget estimate for food subsidy during 2002-03 stood at Rs 1,240 crore and is estimated at Rs 600 crore for the current fiscal.
The state is also working on a pilot project to sell rice from in the fair price shops in pre-packaged conditions.
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The cut in the food subsidy was managed as a result of shifting of procurement to Food Corporation of India (FCI) instead of direct procurement by the state and an upward revision of price of rice above 10 kgs per card holder.
According to the policy note for 2003-04, announced by P Mohan, the minister for cooperation, food, civil supplies and consumer protection in state assembly, the government had retained the issue price as Rs 3.50 per kg for the first 10 kgs and revised the issue price of the balance quantity (only to which the card holders are entitled) to Rs 6 per kg, with effect from October 2002.
The state is also planning to introduce sale of rice in pre-packed conditions.
A senior official attached with the food and civil supplies ministry said that having ensured acceptable quality of rice at the PDS (public distribution system) shops, the government had taken steps to ensure that consumers get the quantity they pay for.
The one kilogram packet of rice would have an additional charge of 50 paise per kg charged towards to the cost of packing.
The state proposes to introduce packaged rice only as an option. The pilot project would cover only rice and not other commodities supplied though the fair price shops.
The policy note estimates (for 2003-04) 225,000 MT of rice, 5000 MT of wheat, 25,500 MT of sugar and 73,000 kilo litres to be sold per month though the public distribution system.