(a) whether the Public Distribution System has been badly affected by the rise in prices of rice and wheat which are supplied through PDS in
all the States especially in Kerala;
(b) if so, the details thereof;
(c) the losses suffered by Food Corporation of India due to delay in releasing PDS items to the States; and
(d) the steps taken by the Government to remedy the situation?
THE MINISTER OF STATE IN THE MINISTRY OF CONSUMER AFFAIRS, FOOD AND PUBLIC DISTRIBUTION ( SHRI SRIRAM CHAUHAN )
(a) & (b) : With a view to neutralise the financial burden consequent
upon the hike in Minimum Support Price (MSP)/Procurement Price and to contain
the food subsidy budget to a manageable level, Central Issue Prices (CIPs)
of PDS foodgrains are revised from time to time. The CIPs of foodgrains
being distributed under PDS were hiked on 1.4.2000which have been
subsequently revised downwards on 25.7.2000 for all the States/UTs
(including Kerala). The prices of PDS foodgrains are still lower than the
open market prices, specially for the people living below poverty line (BPL).
The allocation of foodgrains for BPL families is now made @ 20 kg. per
family per month on the basis of projection of population by Registrar
General as on 1.3.2000 instead of earlier projection of population in 1995.
(c) There is no delay on part of FCI to release the stocks. As per the
reports received from the State Governments offtake of foodgrains from Fair
Price Shops in respect of BPL families, has not been affected. However, the
offtake of APL foodgrains has been reduced in some states after increase in
Central Issue Price (CIP) w.e.f. 1.4.2000. Subsidy on foodgrains for APL
population has been withdrawn. Hence there is no loss to the Government
of India on this account.
(d) The Government have taken the following steps to reduce the excess
stocks from the Central Pool.
(i) Open sale of wheat at reduced prices has been started from 11.7.2000.
(ii) Open sale of rice has been stared from 4.9.2000.
(iii) The Central Issue Prices of wheat and rice were revised down-wards on 25.7.2000 .
(iv) The CIPs of rice and wheat for APL families have been fixed at 100% of
the economic cost or the open market sale price decided by the FCI from
time to time, whichever is lower. The open market rates being less than
the economic cost, the States can avail of this offer and make foodgrains
available to APL population at reduced rates.
(v) The allocation of foodgrains for BPL families @ 20 kg per family per
month is now being made on the basis of population projections of the
Registrar General as on 1.3.2000 instead of projected population of 1995.
(vi) Food grains at BPL rates are available for allotment to State Government
@ 5 kg. per head per month for covering categories of indigent people living
in welfare institutions such as beggar homes, hostels for SC/ST /backward
student / Nari Niketans etc. sponsored by the state Governments and the
concerned administrative Ministry of the Government of India. Foodgrains
can now be allocated under the Annapoorna Scheme to indigent old persons even
in the case of those receiving old-age pension from the State Governments.
(vii) Foodgrains at CIP applicable for BPL families will be allocated for
all welfare schemes implemented by the various Ministries of the Government
of India.
(viii) Foodgrains at the rates applicable for BPL families will be allotted
to the State Governments for undertaking `Food for Work` programmes in the
States, as also for the Greening India Campaign .
(ix) Foodgrains will be allocated at BPL rates for development schemes
(where the beneficiaries belong to the BPL category), implemented by NGOs
sponsored by the state Governments and endorsed by the administrative
Ministry in the Government of India, as also by international organizations
like World Food Programme.
(x) FCI has been permitted to offer wheat for export at a price not lower
than the CIP for BPL category which, at present, is Rs.4150/- per MT.