New resources needed to implement Rs 2 kg rice scheme: Chidambaram

If the state finds new resources or reallocate current resources, then it would be feasible to offer rice at Rs 2 per kg, Finance Minister P Chidambaram said here.

Addressing a group of reporters, Chidambaram said the Centre was already supplying rice at Rs 3.5 a kg to 2.5 crore people in the country under the Andhodya Annadhana Yojana (AAY) scheme. Offering rice at Rs 2 per kg is just one step beyond that, he added.

Stating that each political party was entitled to have a manifesto of its own, he said that it would be feasible to offer rice at Rs 2 per kg only if the state government found new resources or reallocate its current resources.

He also cautioned that the outstanding debt of the states would increase if the states ran fiscal deficits. "The states will have to find the resources to service the debt and need to earn revenue to service others," he added.

Rice has become a big issue in the state after DMK in its election manifesto promised to supply quality rice through PDS at Rs 2 per kg if voted to power. A day before, the ruling AIADMK manifesto promised to maintain the current price of rice at Rs 3.5 a kg.

A few days later, while unveiling his party's manifesto, actor Vijayakanth said that his party would offer 15 kg of rice free to all ration card holders, if voted to power. It was then the turn of union finance minister P Chidambaram who said, "It is feasible to offer rice at Rs 2 per kg."

Shocked over DMK's announcement, Tamil Nadu chief minister Jayalalithaa reacted immediately and said it would be impractical and impossible. However, a few days back she offered to supply 10 kg of rice free of cost through the public distribution system. She also said yesterday that her promise to supply 10 kg of free rice every month to each ration cardholder, if elected to power, was without any condition.

According to reports, there are about 1.88 crore ration card holders in the state.