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LATEST NEWS UPDATES | Grain price for APL may be raised by Mahendra Kumar Singh & Nitin Sethi

Grain price for APL may be raised by Mahendra Kumar Singh & Nitin Sethi

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published Published on May 4, 2010   modified Modified on May 4, 2010


Increasing the prices at which people living above the poverty line are offered monthly foodgrains under the proposed Food Security Act could now offset the cost of increased food subsidy for the poor.

The Planning Commission is going to suggest that the government offer only 25 kgs of foodgrains to those living above the poverty line (APL) at the same price as it costs the government to buy up the grains and transport it to the distributors.

The suggestion comes at a time when the Plan panel had come around to recommending 35 kgs of foodgrain as the entitlement under the Act for those living below the poverty line (BPL) and accepting the Tendulkar committee's estimate of the poor in the country.

The proposal, if accepted by the Empowered Group of Ministers headed by finance minister Pranab Mukherjee, could almost double the price of foodgrains for the APL and possibly dissuade them from taking advantage of their entitlement under the proposed Act.

The Planning Commission is also going to offer two figures as ceiling for BPL based on the Tendulkar committee report. While the committee had pegged those living below the poverty line at 37.2%, the numbers are to be extrapolated on the basis of the population base.


The Times of India, 2 May, 2010, http://timesofindia.indiatimes.com/India/Grain-price-for-APL-may-be-raised-/articleshow/5882023.cms


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