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LATEST NEWS UPDATES | After foodgrain, UPA plans to subsidise edible oil and pulses -Madhvi Sally

After foodgrain, UPA plans to subsidise edible oil and pulses -Madhvi Sally

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published Published on Jul 10, 2013   modified Modified on Jul 10, 2013
-The Economic Times


NEW DELHI: After the ambitious food security law, the UPA government is preparing another populist scheme to expand the supply of subsidised edible oil and pulses through the countrywide network of ration shops in the next two to three months.

"It will be the next major thing. We are working at the earliest. We propose that state governments purchase pulses and edible oil either through imports or locally. We will give subsidy to this. In the next 2-3 months, we will definitely work it out," food minister KV Thomas told ET. The government hopes to provide reliable and affordable supply of the two commodities, which see a lot of market volatility most of the time.

"One way to control the rising prices of commodities is to add in more items to the public distribution system. Some states have done it. We are working on a scheme to give subsidy to states for imported or domestic pulses and edible oil so that both the commodities are available to people. They are an important constituent of nutrition," he said.

India is the world's largest consumer of pulses, with a demand of 18.5-20 million tonne. It is also the world's biggest producer, with an output of 15-18 million tonne as well as the biggest importer, buying 2.5-3 million tonne of pulses, which are an important source of protein for most vegetarians in the country. Consistent efforts by government have led to a 2.9% increase in pulses production in 2012-13 at 17.6 million tonne from the previous year.

Thomas added that domestic crops could be included in the program because the country's own production was increasing. "We are studying what quantity will be required and what will be the financial burden to the Centre," he said adding that depending on the financial burden, it would be further decided whether the scheme would cover more people or the quantity would be increased.

In an earlier scheme -- which was on till March 2013 for pulses and will continue till September 2013 for edible oil -- a kilogram each of imported pulses and edible oil were given to below poverty line (BPL) cardholders by states at subsidised rates. Under the scheme, the Centre was giving a subsidy of .`20 a kg on pulses and .`15 a kg on imported edible oil (refined palmolein or soyabean oil) for BPL families. However, officials at the Food ministry said that the infrastructure and procurement operations had to be made strong similar to wheat and rice.

"It is a good move as fair price shops will see more footfalls and increased sales when new products will be added. It will also encourage farmers to grow more pulses. We need to now work on infrastructure and procurement mechanism," said a person familiar with the development.


The Economic Times, 10 July, 2013, http://economictimes.indiatimes.com/markets/commodities/after-foodgrain-upa-plans-to-subsidise-edible-oil-and-pulses/articleshow/20996441.cms


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