High-level panel reviews foodgrains supply to welfare bodies

A high-level panel today held discussions on whether to continue supplying subsidised foodgrains to welfare bodies covering beggars and destitute once the food law is fully implemented in the country.
The nine-member panel, chaired by Food Minister Ram Vilas Paswan, also discussed the price and subsidy issue in case the government continues to allocate subsidised foodgrains to welfare institutions.
Commerce Minister Nirmala Sitharaman, Power Minister Piyush Goyal, Chief Economic Advisor Arvind Subramanian and Food Secretary Sudhir Kumar were present in the meeting of the panel which was set up by Prime Minister Narendra Modi.
According to sources, the meeting remained inclusive as other key members Transport Minister Nitin Gadkari, Environment Minister Prakash Javadekar, Minister of State for Finance Jayant Sinha and the Finance Secretary were not present in the meeting.

The panel is examining the issue as there is a lack of transparent criteria for identifying the institutions and absence of a monitoring mechanism for the distribution of subsidised foodgrains to welfare bodies covering beggars, homeless children and women, and others.
The panel was set up following the Food Ministry's observations that some states have "neither a well defined criteria for selection of institutes nor fixed guidelines for their supervision. The process of applying for the benefits was also not clearly laid down," sources said.

Some states like Rajasthan, which rolled out the Food Law, have stopped supplying cheap foodgrains to welfare bodies as there is no clarity on the price of foodgrains, they added.

Since most of the deprived sections, including beneficiaries of welfare bodies, are to be covered first under the food law, a decision has to be taken whether to continue allocation of foodgrains to such organisations.
If foodgrains allocation is continued by the centre, sources said that it has to be decided at what price cheaper foodgrains should be given to welfare bodies as there will be no BPL category or BPL rates after implementation of food law.
On the subsidy issue too, the Food Ministry is of the view that the food subsidy bill should cover only the implementations of the food law. Other ministries should bear the subsidy of foodgrains under respective welfare schemes.

The Centre has been allocating subsidised foodgrains since 2001 to state governments covering welfare schemes. Last year, it had allocated around 3 lakh tonnes foodgrains entailing a subsidy of Rs 633 crore.
The Food Law has been rolled out in only 11 states and Union Territories. The Centre has given time till April 4 for other states for its full implementation.
The law aims to provide legal entitlement to 5 kg of subsidised foodgrains per person per month at Rs 1-3/kg to two-third of the country's population.