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LATEST NEWS UPDATES | Food Bill: Government may raise general quota if output improves

Food Bill: Government may raise general quota if output improves

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published Published on Oct 30, 2011   modified Modified on Oct 30, 2011

-PTI


The government has decided to redraft the National Food Security Bill to keep an option open for supplying more than three kilograms of subsidised foodgrains to general households in case of increased output.

"We have received public comments and views of state governments on the draft Food Bill. We have decided to make some changes while finalising the bill," Food Minister K V Thomas told PTI.

In cases of general households' entitlement to subsidised foodgrains, the minister said the word 'minimum' would be inserted in the draft so that the government can increase the allocation if production rises.

In the present form of draft Food Bill, the Food Ministry has proposed that the government would supply 3 kgs of rice and wheat per person per month falling under general households category at a price not exceeding 50 per cent of the minimum support price (MSP).

The draft National Food Security Bill seeks to provide a legal entitlement to subsidised foodgrains to 75 per cent of the country's rural population and 50 per cent of urban India.

Thomas said the government has decided to remove the condition of extending benefits to general households only in states where the Public Distribution System (PDS) is modernised.

"The present draft restricts benefits for general households in states having modernised PDS. Now, the benefit will be extended to all states," he said.

Besides, he said the cash-handout of Rs 1,000 per month for six months to pregnant and lactating women would be extended to the entire country instead of 52 districts.

The changes to be made in the proposed Food Bill were discussed with Congress President and UPA Chairperson Sonia Gandhi, he added.

The proposed bill would cost the government exchequer more than Rs 1,00,000 crore annually in subsidies.


The Economic Times, 30 October, 2011, http://economictimes.indiatimes.com/news/economy/policy/food-bill-government-may-raise-general-quota-if-output-improves/articleshow/10540333.cms


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