EGoM to meet on June 25 to discuss Food Security Act

An empowered group of ministers (EGoM) will meet on June 25 to discuss the draft food security bill, which seeks to provide a fixed quantity of foodgrains at Rs 3 per kg to families living below poverty line (BPL) every month.

Besides the proposed food law, the EGoM, headed by Finance Minister Pranab Mukherjee, would consider a proposal to reduce the quantity of levy sugar (meant for supply through ration shops) that it buys from mills.

The ministry has sought approval to reduce the percentage of levy quota to 16 per cent of the total production from the current 20 per cent for 2009-10 (October-September) as output estimates for the current season have improved to 18.5 million tonnes from about 16 million tonnes, sources said.

At present, mills have to contribute 20 per cent of the total production of sugar in 2009-10 to the government for supply through ration shops, which is technically called levy sugar.
    
The government requires 2.7 million tonnes for ration shops, while at 20 per cent levy quota, it would end up buying 3.7 million tonnes.
    
In the proposed food law, the eGoM would discuss issues relating to fixing the number of beneficiaries to be covered under the Act and increasing the quantity provided every month to BPL families from 25 kg to 35 kg a month.
    
The EGoM, which cleared the draft Food Security Bill in March, had to reconsider it after UPA chairperson Sonia Gandhi wanted improvements with regard to monthly food supply and the number of beneficiaries.
    
In April, the eGoM asked the Planning Commission to provide firm estimates on the number of people living below poverty line.
    
Meanwhile, the Planning Commission has accepted the Tendulkar Committee report on poverty estimation, based on which the number of BPL families would increase to over eight crore from the current 6.52 crore.
    
The Food Security Bill is among the 14 focus areas listed by the newly-constituted National Advisory Council (NAC), headed by Congress president Sonia Gandhi. The next meeting of the NAC on July 1 will focus on the ambitious Food Security Bill.
    
In the proposed draft, there is a provision for giving cash to beneficiaries in lieu of foodgrains under certain circumstances, sources said, adding that a fund would be created for this purpose.
    
The draft bill may not mention the price at which rice or wheat would be provided to the beneficiary, they added.