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LATEST NEWS UPDATES | Free rice distribution may be delayed by Rajesh B Nair

Free rice distribution may be delayed by Rajesh B Nair

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published Published on Jun 10, 2011   modified Modified on Jun 10, 2011
* It requires altering the distribution pattern

* Permission from Centre needed for procuring additional quantum

Implementation of the government decision to enhance the quantity of rice distributed through Public Distribution System outlets may be delayed as altering the distribution pattern followed by the previous administration and meeting the requirement as announced by Chief Minister N. Rangasamy is an arduous task.

Immediately after Mr Rangasamy took charge as the Chief Minister on May 16, he decided to increase the quantum of rice from 20 kg to 25 kg to Below Poverty Line cardholders. He also decided to do away with the existing pattern of 5 kg each of rice and wheat per one rupee to Above Poverty Line cardholders and decided to distribute 15 kg of rice to such beneficiaries.

The task to implement the new decision would be difficult, said a senior official. The first hurdle would be to get permission from the Ministry of Consumer Affairs, Food and Public Distribution to procure additionally around 2,900 tonnes of rice every month to meet the requirement as per the new policy, the official said. Currently, the Civil Supplies Department procures around 3,800 tonnes of rice incurring an expenditure of around Rs. 37 crore annually.

Allocation of rice to States and Union Territory's was made by the Ministry based on poverty estimates made by the Planning Commission. It is to be seen whether the Ministry would enhance the allocation to the territorial administration, officials said.

There is another aspect to the whole issue. The present government had not decided whether to continue with distribution of single boiled rice or provide double boiled. If it decides to abandon the former government's policy, the administration has to prevail upon the Ministry of Consumer Affairs, as the earlier government had given an undertaking to procure single boiled rice without any obstacle. “The FCI procured single boiled rice only to meet the special requirement of the Union Territory administration following the previous government's request,” said the official.

Financial burden

Though there is a view in the present administration to procure the entire rice from open market, it would have serious financial implications and could even invite adverse criticism from auditing agency.

A senior official said the financial burden could be more than Rs. 150 crore annually if it decides to procure the entire quantum from private players. Taking into account all these factors, implementing the new scheme would take several months, the official added.

Along with the decision to enhance the quantum of rice distributed through the public distribution system, the Chief Minister had also decided to increase the old age pension from Rs. 750 to Rs. 1,000 a month to around 1.20 lakh beneficiaries.

It was learnt that the Finance Department had raised certain objections to this, including source of funds to meet the enhanced requirement of around Rs 4 crore every month.

The new scheme would incur an expenditure of Rs. 143.79 crore annually, an official told The Hindu on condition of anonymity.

The Hindu, 10 June, 2011, http://www.hindu.com/2011/06/10/stories/2011061060110100.htm


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