CCEA nod for extra PDS grain to three states likely today

The Cabinet Committee on Economic Affairs (CCEA) is likely to approve on Wednesday a proposal to allocate an extra monthly 62,300 tonnes of grains for supply through ration shops in Tamil Nadu, Kerala and Nagaland, states that have not yet implemented the food law.

Barring these three, the rest 33 states and Union Territories have rolled out the National Food Security Act (NFSA), under which 5 kg of wheat and rice are supplied to each beneficiary at highly subsidised rates of Rs 2-3 a kg.

 

“The CCEA meeting is scheduled for tomorrow. The Food Ministry's proposal on additional monthly allocation of foodgrain to BPL and APL families to three states is on the agenda list,” a source said.

In the Cabinet, the ministry has sought approval for additional monthly allocation of 62,307 tonnes of foodgrain to families of below poverty line (BPL) and above poverty line (APL) to non-NFSA states  — Tamil Nadu, Kerala and Nagaland — for six months till June or till implementation of the food law by the respective states, the source said.

Out of the total quantity, the ministry has proposed allocation of 41,800 tonnes of foodgrain to BPL families at BPL rates and the rest 20,507 tonnes of foodgrain to APL families at two-thirds of the minimum support price (MSP) of wheat and rice or MSP derived price.

Last year, the additional allocation was made to non-NFSA states at BPL and APL rates. However, the ministry has proposed de-incentivising so that these three states are forced to implement the food law at the earliest.

Wheat and rice are priced at Rs 4.15 per kg and Rs 5.65 for BPL families while MSP is fixed at Rs 15.25 for wheat and Rs 14.5 for rice.