Tamil Nadu - Chennai   

Central rice allotment for State all set to go up

CHENNAI: The Central government's rice allotment for the State is set to go up once its fresh norms on the public distribution system take effect.

As per the proposed norms, each cardholder coming under BPL (Below Poverty Line) category will be given 35 kg of rice at Rs.5.65 per kg and those under APL (Above Poverty Line), 15 kg at Rs.8.30 per kg.

The issue prices are determined by the Food Corporation of India (FCI). However, the State governments are free to fix the retail selling price. This is why rice is being distributed in Tamil Nadu at Re.1 per kg, irrespective of economic status of cardholders. The State has 1.97 crore cardholders.

At present, the monthly allotment is about 2.96 lakh tonnes, of which around 65,000 tonnes are meant for those coming under the Antyodaya Anna Yojana (AAY) scheme; 1.05 lakh tonnes for BPL category and 1.26 lakh tonnes for APL category. [The FCI's price for AAY is Rs.3 per kg]. But, as the allotment falls short of the State's requirement by 20,000 tonnes, the State government procures the balance portion under the Open Market Sales Scheme of the Food Corporation of India (FCI) and from other States, including Andhra Pradesh. During April 2009-March 2010, the total quantity of rice distributed through PDS was 37.95 lakh tonnes. The figures were 32.2 lakh tonnes in 2005-2006; 33.63 lakh tonnes in 2006-2007; 33.84 lakh tonnes in 2007-2008 and 36.3 lakh tonnes in 2008-2009.

State government officials are pondering over the other implications of the Centre's move, including those on food subsidy burden. The officials admit that they have no concrete database with regard to BPL cardholders. The Central government allots BPL quota of rice to the State on the basis of BPL data it has.

If the distribution of 35 kg of rice to BPL becomes mandatory, the State government has to take a call on changing its PDS policy. As of now, Tamil Nadu adopts universal PDS, not targeted PDS. Under its universal PDS policy, each cardholder is entitled to 20 kg of rice a month. As of now for AAY category 35 kg of rice is to be given per month per card and for others it is in the range of 12 to 20 kg. Even in the event of supplying the revised quantity to all BPL cardholders, the subsidy burden will go up.

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