Tuesday, September 23, 2014

NAREDRA MODI – LED GOVT. PROMISES 40% INCREASE IN SUPPLY OF GRAIN


The Modi government promises a 40% increase in the supply of heavily subsidised grain as it seeks to expand coverage under the food security law, a move that can inflate the subsidy bill and disappoint critics who thought the new regime would abandon UPA's entitlement-based approach.

Food Minister Ram Vilas Paswan said monthly entitlement of 5 kg foodgrain per person under food security law was meagre. "The focus of the government will be on providing food security to all. With huge stocks of grain in the country we want to increase monthly entitlement to 7 kg," he told ET in an interview. He said the food law passed by the previous government was inadequate.

"I feel the Food Security Act was prepared hurriedly. In my understanding during three months in government, it does not have clear concepts," Paswan said.

He said Modi himself, when he was chief minister of Gujarat, had observed that the grain provided under the Act was too less.

Paswan was silent about the food subsidy bill, which is already projected to be Rs 1.15 lakh crore this year, but analysts said additional grain would cost a lot of money.

Tejinder Narang, a Delhi-based analyst said the bill may rise by about 15% apart from starving the open market, which would raise prices. 

Pramod Joshi, director, International Food Policy Research Institute said if the government is raising the quantity of susbsidised grain it would also be looking at steps like focusing on the poorest households and direct cash transfers subsidies following the campaign to open bank accounts.


The issue of food security came to the centre stage last year when Sonia Gandhi spearheaded the food security law in the last year of the UPA government. 



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