TN urges Centre to share 50 per cent of special PDS subsidy

Scheme currently leaves a subsidy burden of Rs 1,100 cr for the State every year

The Tamil Nadu government has urged the Centre to share 50 per cent of the total cost for implementing the special public distribution system (PDS) in the state.

Speaking at the Conference of Ministers of Consumer Affairs of States and Union Territories on increase in food prices, Tamil Nadu food minister R Kamaraj said the state was implementing a special PDS scheme by supplying subsidised tuar dal, urad dal and refined, bleached and deodourised palmolein to ration card holders, while it was incurring Rs 1,100-crore expenditure on it every year.

Under the Food Security Act, he urged for a guaranteed quantity of subsidised food grains along with a particular subsidy level for a period of at least 10 years, as against the current assurance of three years from the date of operation of the Act.

He also urged the Centre to withdraw the decision to allow 51 per cent foreign direct investment in multi-brand retailing keeping in mind the public interest.

The minister also urged the government to restore the levy of sugar from the mill-owners. Besides, he sought government assurance that the difference between open market price and issue price of sugar under the PDS would be taken as a subsidy after 2014-15.