Even as the Centre and the Reserve Bank of India say a cut in the subsidy bill is important in reducing inflation and the fiscal deficit, K V Thomas, minister of food, and consumer affairs and public distribution, has said currently, subsidies in the food sector present no worries.
Speaking to reporters here on Saturday, Thomas said, “Being consumer affairs minister, my view is food should be made available to the poor at a subsidised rate. These are issues we are discussing. We have not taken any decision regarding subsidy on food items…Currently, our food subsidy bill alone stands at Rs 88,000 crore. This is huge. And, I need about 55 million tonnes (mt) of foodgrain. On this issue, we have not retracted. At present, (there is) nothing to be worried about in the food sector.”
Recently, Thomas had expressed concern on the cap on subsidised liquefied petroleum gas cylinders, stating the move would affect the middle class. On the long-pending National Food Security Bill, he said the standing committee was expected to submit the Bill in a month, adding the government expected it would be passed in the winter session of Parliament.
Thomas said the availability of rice, wheat and sugar was stable and likely to be sufficient for this year. However, he added the government was somewhat worried about the availability of pulses and edible oil. The government has decided to continue supplying pulses and edible oil at subsidised rates. Last year, the subsidy on every kg of pulses supplied to below-poverty-line families was Rs 10. However, this has been raised to Rs 20, while the subsidy on every litre of edible oil stands at Rs 15.
