The Hindu : Tamil Nadu / Chennai News : Special PDS period extended till September

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Thursday, Jul 23, 2009
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Tamil Nadu

Tamil Nadu - Chennai

Special PDS period extended till September

T. Ramakrishnan

Subsidy burden may touch Rs.500 crore

— Photo: R. Ragu

IN DISCUSSION: Chief Minister M. Karunanidhi chairing a meeting of the Cabinet at the Secretariat on Wednesday.

CHENNAI: The government on Wednesday extended till September the period of the Special Public Distribution System under which commodities such as urad dhal, toor dhal and palmolein oil are distributed at subsidised rates.

The decision was taken by the Cabinet. The Special PDS period was to expire by this month-end.

The Tamil Nadu Civil Supplies Corporation procures essential commodities such as toor dhal, urad dhal and palmolein oil from the open market for supply under this special scheme.

While the PDS wheat is converted to fortified wheat flour, wheat obtained under the Open Market Sale Scheme (OMSS) of the Food Corporation of India is converted into rava and maida through custom milling.

Toor dhal and urad dhal are supplied at Rs.32 a kg and Rs.36 a kg. Palmolein oil is given at Rs.30 a litre.

Sources, explaining the rationale behind extending the period, said that the arrangement was originally meant to be a short-term measure.

In the previous financial year, the amount of subsidy borne by the government was Rs.250 crore. This year, it may touch Rs.500 crore, as prices of certain commodities, especially toor dhal, have gone up steeply.

In view of the rise in the price of toor dhal in the open market, more people prefer to buy the commodity from fair price shops, the sources admit. Normally, 10,000 tonnes of toor dhal are distributed every month. This month, as of now, 8,500 tonnes have been supplied to family cardholders.

The Cabinet also approved regulations for the establishment of amusement parks and model schools in 44 blocks as part of a Central scheme, the sources add.

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