Karnataka to launch its own food security scheme from July 10

The new Congress govt gearing up to launch 30 kg rice at Re 1 per kg to BPL families; to cost Rs 4,300 cr to exchequer

Siddaramaiah
Mahesh R Kulkarni Bangalore
Last Updated : Jul 04 2013 | 4:44 PM IST
Even as the United Progressive Alliance (UPA) government decided to promulgate an ordinance to implement the much talked food security programme for almost two-thirds of the country's population, the newly elected Congress government is struggling to implement an almost similar programme in the state.

As promised in its election manifesto, the new government led by chief minister Siddaramaiah is gearing up to launch the ambitious programme of providing 30 kg rice every month to all families under below poverty line (BPL) at a subsidised rate of Re 1 per kg from July 10 through the public distribution system (PDS).

The cheap rice scheme would cost the government Rs 4,300 crore a year.

Immediately after taking oath as chief minister on May 13, Siddaraiah had announced that the scheme would be implemented from June 1. However, the government had to postpone the implementation twice as it could not source additional rice from the Centre at Rs 5.65 per kg, the rate at which the Food Ministry supplies rice to the state under the BPL quota.

The new scheme will benefit 97,35,059 families across the state and the government requires 2,77,254 metric tonnes of rice every month to implement the scheme.

The Union Food Ministry rejected Karnataka government's demand for supply of additional stock of 1,29,254 metric tonnes of rice at BPL prices. Presently, the state gets 1,48,000 metric tonnes of rice every month under the public distribution system.

“The central government could not meet our demand after agreeing to do so. The supply would be received this month, and we will definitely implement the scheme from July 10,”  Siddaramaiah had told reporters recently.

The chief minister would kick start the programme in Bangalore, while other ministers will do the same in the districts. Under the scheme, maximum of 30 kg rice at Re 1 a kg would be sold to only BPL families with more than two members in the family. If the BPL card family has only two members, the entitlement would be 20 kg and one member, the quantum sold would be 10 kg.

“The government is planning to source rice from Chhattisgarh and Food Corporation of India from August onwards. It would cost us at least Rs 27 per kg, which will be sold to BPL cardholders at Re 1 per kg. For the month of July there is enough stock in the state,” an official in the department of food and civil supplies said.

Previously, the BJP government was supplying rice at Rs 3 per kg with a maximum of 4 kg per person.

The state government is also planning to supply wheat through PDS and has asked districts to submit their demands.

Meanwhile, the government faces several challenges in effectively implementing the scheme. It is faced with an uphill task of weeding out bogus BPL cardholders. In 2010, when the PDS system was partly automated, the government found 17.2 million ration cards, which was more than the total number of families in the state.

As per the 2011 census, there are only 13.2 million families in the state.
*Subscribe to Business Standard digital and get complimentary access to The New York Times

Smart Quarterly

₹900

3 Months

₹300/Month

SAVE 25%

Smart Essential

₹2,700

1 Year

₹225/Month

SAVE 46%
*Complimentary New York Times access for the 2nd year will be given after 12 months

Super Saver

₹3,900

2 Years

₹162/Month

Subscribe

Renews automatically, cancel anytime

Here’s what’s included in our digital subscription plans

Exclusive premium stories online

  • Over 30 premium stories daily, handpicked by our editors

Complimentary Access to The New York Times

  • News, Games, Cooking, Audio, Wirecutter & The Athletic

Business Standard Epaper

  • Digital replica of our daily newspaper — with options to read, save, and share

Curated Newsletters

  • Insights on markets, finance, politics, tech, and more delivered to your inbox

Market Analysis & Investment Insights

  • In-depth market analysis & insights with access to The Smart Investor

Archives

  • Repository of articles and publications dating back to 1997

Ad-free Reading

  • Uninterrupted reading experience with no advertisements

Seamless Access Across All Devices

  • Access Business Standard across devices — mobile, tablet, or PC, via web or app

More From This Section

First Published: Jul 04 2013 | 4:40 PM IST

Next Story