Deadline for Food Act execution not to be extended

The Centre has decided not to extend the Wednesday deadline for states to implement the National Food Security Act (NFSA).

"Those states who have not adopted the NFSA will continue to get grains under old public distribution system rates, but they must realise it is not in their own interest to keep away from the Act for long," a food ministry official said.

Sixteen states and Union territories implemented the Act's provisions in all districts or some.

The delay has been mainly due to the digitisation and the computerisation of ration cards. The delay is also due to Aadhar cards and bank accounts, necessary for a state getting grains under the Act.

The Centre had for a third time extended the deadline in March to September, after states sought time for completing digitisation.

The Centre had also agreed to share half of the financial burden of the transportation of grains from the Food Corporation of India godowns to ration shops, and also of the commission paid to shopkeepers under the Act.

As a result, the benchmark margin for ration shopkeepers, in case of normal states, would be Rs 87 a quintal.

For special states and Union territories it would be Rs 160 a quintal. Till now, this margin varied between Rs 20 and Rs 100 a quintal and was paid by the states who added this to the final retail price of grains sold through ration shops.

In the existing Targeted Public Distribution System (TPDS), it is the state government's responsibility to share the full financial burden of transportation of foodgrains from FCI godowns to ration shops and also make payments to the ration shop owners.

Under the NFSA, the Centre provides legal entitlement for cheap grains to almost 67 per cent of the Indian population. Wheat is provided at the rate of Rs 2 per kilogram, rice at Rs 3 per kg and coarse cereals at Re 1 per kg.