Modest raise in rice subsidy from October, says Paswan

The central subsidy on rice for Direct Benefit Transfer (DBT) has been raised to Rs 25.17 per kg from Rs 24.50 for the 2016-17 marketing year starting next month, the government said on Friday.

Union Food Minister Ram Vilas Paswan gave this information during a meeting with Puducherry Chief Minister V. Narayanasamy here, as the latter voiced concern about lower food subsidy given at present amid higher retail prices.

"The cash subsidy on rice to be given via Direct Benefit Transfer (DBT) to public distribution system (PDS) beneficiaries for the 2016-17 will be Rs 25.17 per kg starting October. This rate will continue till March 2017," Paswan told Narayanasamy.

Puducherry was the first to roll out DBT of food subsidy under the new Food Security Law enacted in 2013.

"Puducherry has demanded increase in rice subsidy given under DBT taking into account the new MSP. We told them that we have already worked out the subsidy amount and it will be notified soon," Paswan said.

A subsidy of Rs 17.06 per kg is being given on wheat via the DBT in the ongoing 2016-17 marketing year (April-March).

This rate of wheat subsidy may be also revised in March 2017, officials said.

The central government has been asking other states also to initiate a pilot programme to implement DBT for food subsidy.

The Centre provides about Rs 1.30 lakh crore food subsidy annually.

--IANS

nd/nir/vt