With a view to protect families below poverty line (BPL) from rising food prices, the Food and Consumer Affairs Ministry is contemplating to provide pulses through the Public Distribution System (PDS) shops to BPL families with an increased subsidy. The food ministry has proposed to increase the subsidy amount to Rs 20 per kg from earlier subsidy of Rs 10 per kg and will be submitting the proposal on this soon before the Cabinet Committee on Economic Affairs (CCEA).
The Centre is also thinking over for restarting the distribution of imported pulses through PDS shops, which it had initially started in November 2008. Under this scheme the government used to provide pulses at Rs 10 per kg subsidy through PDS to above poverty line (APL) and BPL families. Since the off-take by the state was poor, the government stopped the scheme last year. The Centre is mulling over restarting the scheme on back of rising prices of the proteinaceous food item and its declining acreage. For this, the food ministry is discussing with the Ministries of Agriculture and Finance to re-launch it.
The Prime Minister's Office (PMO) earlier this week had also expressed worry over rising prices of sugar, pulses and vegetable, which has been showing an upward trend while on the other hand the prices of wheat and rice were stable. Besides, last week the Food Minister, KV Thomas, had also stated that his ministry in an effort to control prices is preparing a paper on the subsidized pulses scheme through ration shops for the consideration of the Cabinet.
India is the world's largest pulses producer and consumer, is reeling under deficit monsoon rains of about 22% so far this year affecting sowing of paddy, pulses, coarse cereals and oilseeds. Pulses area as of July 21, stood at 4.01 million hectares compared to 5.85 million hectares same period last year, a decline by 32%. In 2011-12 crop year (July-June) period, pulses production fell to 17.21 million tonnes from record 18.24 million tonnes in the previous year.
The country imported 2.8 million tonnes of the commodity in 2011-12 fiscal as against 2.69 million tonnes in 2010-11. The domestic demand is pegged at around 18.84 million tonnes.
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