Food Ministry is believed to be against reducing the coverage under the food law to 40 per cent of the country's population from the current 67 per cent as suggested by the Shanta Kumar panel.
The Ministry does not want to take the politically sensitive decision after the recent drubbing of the BJP in Delhi election and ahead of crucial assembly polls in states like Bihar where the Opposition might make the scaling down of food security coverage an issue, sources said.
A final call on this issue would be taken by Prime Minister Narendra Modi, sources said.
However, the government may accept other suggestions of the panel which are feasible to implement, sources added.
The eight-member panel -- which was set up in August 2014 under the chairmanship of BJP MP Shanta Kumar to recommend a complete overhaul of FCI -- had submitted its report last month. The Prime Minister had asked the Food Ministry to give its views on the report at the earliest.
In the report, the committee has suggested that the government can cut its annual food subsidy bill by over Rs 30,000 crore through reduction of coverage of beneficiaries to 40 per cent under the food law and outsourcing major work of FCI to states governments and private players.
Among others, it had also recommended coverage of more BPL families under the food law and increase the quantity of foodgrains supply to 7 kg per person per month from the existing 5 per kg.
The law aims to provide legal entitlement to 5 kg of subsidised foodgrains per person per month at Rs 1-3/kg to two-third of the country's population.
Although 11 states have so far rolled out the food law, which was passed by Parliament in September 2013, sources said that none of the states have put in place requisite infrastructure for smooth implementation.
The government is also planning to extend the deadline for implementing the food law beyond April 4.
