A PM-constituted panel has suggested that the government continue supply of subsidised foodgrains to the most deprived people under various welfare schemes like Mid-Day meal even if they are covered under food security law.
The nine-member panel, headed by Food Minister Ram Vilas Paswan, also recommended that foodgrain subsidy under welfare schemes should be reflected in the budget of the respective implementing ministry and not in the subsidy bill of the Food Ministry.
"After discussing the matter in detail, it has been decided that the existing allocation of foodgrains should be continued to the deprived section covered under welfare programmes like Mid-Day meal being implemented by various ministries," Paswan told reporters.
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The panel also suggested putting in place a transparent system for identifying the welfare institutions for better distribution of subsidised foodgrains, Paswan said.
The panel's recommendations will be sent to the Prime Minister's office soon, he added.
The government gives highly subsidised foodgrains to various welfare schemes, besides allocation under food security law.
Transport Minister Nitin Gadkari, Environment Minister Prakash Javadekar, Minister of State for Finance Jayant Sinha, Commerce Minister Nirmala Sitharaman and Power Minister Piyush Goyal are members of the panel.
Other members include Chief Economic Advisor Arvind Subramanian, and Food and Finance Secretaries.
The Centre has been allocating subsidised foodgrains since 2001 to state governments for welfare schemes. Last year, it had allocated around 3 lakh tonnes foodgrains entailing a subsidy of Rs 633 crore.