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CCEA likely to decide price for extra food grains supply to states

22 Aug 2013 Evaluate

The Cabinet Committee on Economic Affairs (CCEA) is likely to verify a proposal to decide a fix rate at which food grains will be provided to states beyond the allocated quantity made under the National Food Security Ordinance. The government has decided to give 5 kgs of rice and wheat every month per person at highly subsidised rates of Rs 2-3 per kg under the ambitious Food Security Programme .

It is reported that the food ministry is of the view that the additional food grain, estimated at about 3 million tonnes, should be supplied to states at Above Poverty Line (APL) rates, which are Rs 6.10 per kg for wheat and Rs 8.30 per kg for rice respectively. If the CCEA approves this proposal, the government will have to make an amendment to the Food Bill introduced on August 7 in Lok Sabha to replace the National Food Security Ordinance.

Earlier, many state governments, including Kerala, had written to the food ministry that their annual food grains allocation will decline after the implementation of this programme. However, the parliamentary standing committee had suggested that the existing allocation of states should be protected through an executive order.

The Food Security Programme will cost the exchequer around Rs 1,25,000 crore annually to supply around 62 million tonnes of rice, wheat and coarse cereals to 67 percent of the population.

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