Cabinet to discuss draft Food Security Bill tomorrow

The Cabinet is scheduled to meet tomorrow to approve the draft Food Security Bill which seeks to give legal entitlement on subsidised foodgrains to 64% of the country's population.

"The draft Food Bill is listed in the agenda for Cabinet meeting tomorrow," Food Minister K V Thomas said.

Thomas said that the Food Subsidy Bill is expected to increase to about Rs 95,000 crore from Rs 63,000 crore in last fiscal, while foodgrains requirement would go up to 61 million tonne from 55 million tonne once the law is implemented.

Although the government has enough foodgrains to meet the demand for the next two years, the minister said the draft Bill has suggested an investment of Rs 1,10,000 crore to boost farm production.

Giving details of the draft Bill, Thomas said 63.5% of the country's population would be covered under the proposed Act which was promised by the Congress Party in its manifesto during 2009 general election.

The beneficiaries have been divided in two parts -- priority household (same as BPL in current public distribution system) and general households (APL).

The government will provide 7 kg of rice and wheat to per person per month to priority households at Rs 3 and Rs 2 per kg, respectively, Thomas said, adding that general households would get a minimum 3 kg of foodgrains at 50% of the minimum support price.

In rural area, up to 75% of the total population would be covered, of which at least 46% would be under priority households. In urban, up to 50% of the total population would be covered with at least 28% under priority households.

"After consultations with National Advisory Council and Prime Minister's Economic Advisory Council, the scope of the proposed Act has expanded from what was originally proposed in 2009," Thomas said.

The proposed Act would cover pregnant women, lactating mothers, children up to eighth class, destitutes and old age people among others who will get prepared food, he said.

"Lactating women will also get Rs 1,000 per month for six months," he said.

The minister informed that Bill provides for cash reimbursement to the beneficiaries if the government fails to provide subsidised foodgrains because of natural calamities such as drought and floods.

Under the present PDS, the government provides 35 kg of wheat and rice per month to 6.52 crore families under below poverty line (BPL) at Rs 4.15 and Rs 5.65 per kg respectively.

About 11.5 crore families under APL category gets between 15 and 35 kg of wheat and rice per month at Rs 6.10 and Rs 8.30 per kg, respectively.