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Beneficiaries not using subsidy amount to buy foodgrain: Puducherry -Dipak K Dash

-The Times of India

NEW DELHI: The Puducherry administration has approached the Union food ministry to seek a return to the system of distributing subsidised foodgrain, instead of crediting the subsidy to the bank accounts of beneficiaries. The Union territory administration has claimed the beneficiaries are not using the subsidy amount to buy foodgrain.

"The chief minister recently put up this proposal before Union minister Ram Vilas paswan. The UT administration says people are misutilising the subsidy from central government. We can't go back on the decision unless we are satisfied with the reason cited by the UT," said a food ministry official. The official added that even as the Centre rolled out direct benefit transfer (DBT) for food subsidy, the UT administration continued its scheme of providing 10kg singleboiled rice free per month to each family from the PDS. "When they get free rice, why will they buy grain with the subsidy amount?" asked the official.

The Centre had rolled out DBT for subsidised foodgrain in Puducherry, Chandigarh and Daman and Diu in 2015. A study carried out to assess the impact later that year had shown that 70% of the beneficiaries in Chandigarh and 88% in Puducherry felt the amount credited to their accounts was not enough to buy 5kg of foodgrain per family member, their entitlement under the food security scheme.

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