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Food subsidy bill to rise by Rs 6,000 crore: Montek


Montek Singh Ahluwalia on Monday told NDTV that the food subsidy bill is set to rise by Rs 6,000 crore due to an upward revision in the number of families living below poverty line.

Montek said that the plan panel would revise BPL count up from 6.5 crore to 7.4 crore families. The fresh estimate could be based on Suresh Tendulkar's poverty formula, he added.

Earlier, the government said that it needs more time to draft a foolproof food security bill, asking the Planning Commission to give it the exact definition of the people Below Poverty Line (BPL), who would be entitled to a specified quantity of rice or wheat every month.

However, Montek said that the increase in subsidy is not a big problem, he added.

He also said that the panel cannot base food subsidy on states' number of 11.2 crore BPL.

Meanwhile, the plan panel would suggest 25 kg foodgrains at Rs 3 and another 10 kg at higher prices. The subsidy bill is set to rise 'significantly' if 35 kg foodgrains is given to all APL families.