Indian sugar mills association

Food Security Bill will not ramp up subsidy: Thomas

Date:	12 Dec 2011

Source:	The Financial Express

Reporter:	Sandip Das

News ID:	759

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New Delhi: Just two days ahead of a crucial cabinet meeting to clear the UPA-II government`s National Food Security Bill (NFSB), food minister KV Thomas on Sunday said the country`s food subsidy would not go up significantly following implementation mega initiative, which aims at giving legal entitlement to subsidised foodgrains to two-third of the country`s population.

“Through modernisation of the Targetted Public Distribution System and improvement in the foodgrains storage mechanism, we are aiming at reducing wastages of grains which would eventually reduce the food subsidy component,” Thomas told FE. The Union cabinet is slated to meet on Tuesday to consider approving the food Bill, which the ministry intends to introduce in the current season of Parliament.

Thomas said the annual food subsidy bill, following the implementation of NFSB, would go up from the current level of R63,000 crore to R95,000 crore in the short run. However, with the reduction foodgrain losses due to modernisation of TPDS, which is expected to bring down food grains pilferage currently estimated at 30% to 40%, “the food subsidy would be reduced to around R70,000 crore within two to three years”.

“Five years back, annual foodgrain wastage during transportation from various godowns of Food Corporation of India and state government agencies was around 2.5 lakh tonne, which we have managed to bring down to around 4000 tonne at present through creating better storage facilities,” Thomas said.

The food ministry has also managed to incorporate many of the contentious clauses into the food Bill, which were initially opposed by finance ministry. According to the final draft approved by the Empowered Group of Minister (EGoM), a clause providing a monthly allowance of R1,000 for six months to all lactating mothers for providing `nutrition security` in the rural areas under the Janani Suraksha Yojana has been included.

Besides, under the final version of the food Bill, which has stipulated 75% of the rural households will get subsidised grain under the law, atleast 46% households would be considered as `priority` category, and each person in these households will get the 7kg grain a month at subsidised prices— R2 per kg for rice, R3 for wheat and R1 for coarse grain. In case of urban centres, out of the 50% of the total households to be covered under the food Act, atleast 28% would get `priority` status.

“It implies that quantum of priority sector population entitled for subsidised food grains will even go up beyond stipulated numbers,” Thomas said.

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