Govt may revive inexpensive cooking oil scheme for poor

The government is considering the re-introduction of the scheme to provide inexpensive cooking oil to the population below the poverty line through ration shops in the 2009-10 Budget, which will be presented by Finance Minister Pranab Mukherjee on July 6.     

The Centre had earlier in July 2008 launched the scheme to supply subsidised oil to the poor, which was valid till March 31, 2009. The government could not take a view on the scheme because of the general elections.     

With the UPA coming to power with an increased majority, sources said the scheme may be re-introduced in this year's Budget to benefit poor households. Moreover, they added, subsidy outflow is not likely to be very high.     

Unlike last year, when the government agreed to subsidise the cost of import by Rs 15 per kg, the scheme this time may offer cooking oil at Rs 30 per kg to below-the-poverty-line families, irrespective of the cost of import, they added.     

Last year, the Centre had launched the scheme to provide relief to the poor as during that time the retail prices of cooking oil had gone up to over Rs 80 a litre.     

If the subsidy is to be calculated against the current market price of edible oil, the government may have to provide Rs 15-20 per kg. So, the monthly subsidy bill will be up to Rs 130 crore as there are 6.52 crore BPL families (including about 2.5 crore under Antodaya Anna Yojana) that get PDS benefits.