Party spokesperson KC Tyagi said the Bill will benefit 86 percent of people in Bihar, where his party is in power, and 70 per cent in the country.
"It will benefit so many people. That is why we have decided to support it," he said.
The party, which appeared to have come closer to the Congress after snapping ties with BJP, has 20 MPs in Lok Sabha and eight in Rajya Sabha.
Tyagi said UPA government has accepted two of the three amendments in the Bill moved by his party.
The Centre has agreed to share the financial burden of transporting food across the state and to bear the expenditure for expanding fair price shops.
The government has, however, not yet offered any assurance on the party's demand that it should sponsor the setting up of cold storages in states, he said.
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