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LATEST NEWS UPDATES | Food ministry to step up procurement for proposed Food Law

Food ministry to step up procurement for proposed Food Law

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published Published on Jun 13, 2011   modified Modified on Jun 13, 2011

-PTI

 

The food ministry plans to augment wheat and rice procurement by 10 million tonnes to meet the expected demand for 70 million tonnes of foodgrain under the proposed National Food Security Act .

"We have to increase the foodgrain procurement to 70 million tonnes in order to meet the requirement under the proposed bill," according to a senior official.

The government buys around 60 million tonnes of wheat and rice, about 30 per cent of the country's total output of these two crops, the official said.

"Higher support price will boost procurement level," the official said, adding that the government has announced an increase in the minimum support price (MSP) of paddy by Rs 80/quintal for the 2011-12 Kharif season.

An increase in the foodgrain procurement will result in the rise of the government's Food subsidy bill to Rs 1,00,000 crore from Rs 80,000 crore, the official said.

From the last year's crop, the government had till last week purchased 57 million tonnes of rice and wheat. The procurement season is still underway.

The Food Ministry has finalised the draft National Food Security Bill , which aims at providing a legal right over subsidised foodgrain to 68 per cent of the people in the country. India's population is around 1.2 billion.

The draft bill guarantees 7 kg of wheat or rice to every person belonging to the 'priority households' and 3 kg to individuals from the 'general households' every month at subsidised prices.

The ministry has proposed subsidised rate of Rs 2/kg for wheat and Rs 3/kg for rice for priority households and Rs 5.50/kg wheat and Rs 7.50/kg of rice for general households.

At present, the government supplies 35/kg of subsidised foodgrain to 6.52 crore BPL ( Below Poverty Line )) families and over 15 kg to 11.5 crore Above Poverty Line families.

The draft bill makes it compulsory for state governments to give the "Food Security Allowance" in cash to targeted sections in case of failure to supply foodgrain.

To address the grievances of the targeted sections, the draft bill calls for setting up of an advisory body called the Food Security Commission at national, state and district levels.

The Economic Times, 12 June, 2011, http://economictimes.indiatimes.com/news/economy/policy/food-ministry-to-step-up-procurement-for-proposed-food-law/articleshow/8822990.cms


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