The Hindu : Tamil Nadu News : 15,500 tonnes of palm oil sanctioned to State

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Sunday, May 11, 2008
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Tamil Nadu

Tamil Nadu

15,500 tonnes of palm oil sanctioned to State

Special Correspondent

For distribution through the public distribution system

CHENNAI: The Union Government has sanctioned a monthly allotment of 15,500 tonnes of palm oil to Tamil Nadu for distribution through the public distribution system.

This will enable the State to be liberal in supplying palm oil, according to K. Shanmugam, Secretary, Food, Civil Supplies and Consumer Protection.

At present, each card holder is entitled to one litre at Rs. 40.

Till now, the State government has been procuring palm oil through the Civil Supplies Corporation and from importers after floating bids. This arrangement will come to an end this month with the Centre having decided to supply palm oil to the States.

The Union government will bear a subsidy of Rs. 15 a kg supplied to the people. If the rate of the edible oil supplied by the Centre comes to Rs. 43-Rs. 44 a kg, the State will bear the difference in the cost of retail price.

Commodities such as pulses and oil are being supplied at subsidised rates through the special public distribution system for the past one year.

Since the launch of the special public distribution system in April last, the cost of subsidy borne by the State comes to Rs. 50 crore.

The Centre is planning to import pulses for supply to States, says the Secretary.

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