Government allocates 5 mt foodgrain for PDS

The government approved an additional allocation of 5 million tonnes (mt) of foodgrains – wheat and rice – to states for distribution through the Public Distribution System (PDS). An Empowered Group of Ministers (EGoM) headed by Finance Minister Pranab Mukherjee, also refrained from uplifting the ban of the export of pulses and has decided to allow duty-free imports of pulses till March 2012.

“It has been decided to give additional 2.5 million tonnes of wheat and rice quota at the below poverty line (BPL) rate to the states. It was also decided to give 2.5 million tonnes additional quota to the above poverty line families at APL rates,” Agriculture Minister Sharad Pawar said after the EGOM meeting.

The minister added the total amount of 5 mt would be available for states for lifting by tomorrow.

The government has taken the step with an aim to increase supply and ease inflation and also offload huge government buffer stocks, currently around 190 per cent above the buffer stock norm.

These allocations for BPL and APL categories would be above the current allocations.

BPL families get wheat and rice at Rs 4.15 and Rs 5.65 per kg, respectively.