Pds Wheat Price For Poor May Be Set At Rs 2.50 A Kg

Prime Minister H D Deve Gowda is expected to announce the prices of foodgrain to be supplied through the PDS for people living below and above the poverty line in parliament on Monday. By all indications, the price of wheat for those below the poverty line is likely to be around Rs 2.50 per kg and for those above the poverty line, around Rs 4.50 a kg.

The issue appeared to have been bounced, as it were, from a `super-super cabinet to a `super cabinet and then to the Union cabinet.

Two committees of the United Front discussed the issue yesterday, and laid down the guidelines for the Union cabinet that wheat and rice should be provided to people in both categories at the lowest possible price. The standing committee and the steering committee met separately for nearly three hours and left it to the government to fix the exact price.

 

Union minister for parliamentary affairs Srikanta Jena yesterday said the Union cabinet had not met on the subject yet, and could take up the issue on Sunday. A Front spokesman said the nine-member standing committee was unanimous that it should be left to the Cabinet to work out the exact price.

Gowda told the steering committee that he was aware of the views of members, and he would now work out the prices accordingly.

The next meeting of the steering committee has been scheduled for February 25 to discuss other economic issues including opening up of the insurance sector. Senior Front leaders indicated that the Union cabinets decision on the prices was likely to be taken before the meeting. In all likelihood, Gowda would announce the prices in parliament on Monday.

At the standing committee meeting, Union food minister Devendra Prasad Yadav placed several alternatives available before the government on the subject, along with the financial implications. Union finance minister P Chidambaram said he had already explained the problems involved, but asked the committee to take a decision.

The broad guideline laid down by the steering committee is that wheat and rice should be made available at the cheapest possible price, senior Janata Dal leader S Jaipal Reddy said after the meeting. He said it was for the government to work out the exact price.

Front sources said the central issue price for wheat, which is Rs 4.02 at the moment, is likely to be marginallly increased.