MINISTER OF STATE (INDEPENDENT CHARGE) FOR CONSUMER AFFAIRS, FOOD & PUBLIC
DISTRIBUTION (PROF. K.V. THOMAS)
(a):- The food subsidy allocated during the last three years and current
year is as under:-
(Rs. in crore)
Year Subsidy allocated
2009-10 58242.45
2010-11 62929.56
2011-12 72370.90
2012-13(BE) 74551.99
(b) to (e): No madam. Food Subsidy is released to Food Corporation of India
(FCI) and Decentralised Procurement (DCP) States on distribution of foodgrains
as the difference between cost of foodgrains procured and Central Issue Price
(CIP). Under Decentralised Procurement (DCP) Scheme, States undertake the
responsibility of procurement of foodgrains, its storage and distribution under Targeted Public Distribution System (TPDS). The entire difference between the
economic cost of foodgrains and Central Issue Price (CIPs) is reimbursed to
these States directly as food subsidy.
As per the current policy, an advance subsidy covering 90% of the estimated requirement is released during every quarter based on estimates given by DCP
States. At the end of the quarter, based on provisional estimates given by
States, provisional subsidy at 100% of fixed costs (Minimum Support Price,
Bonus and Taxes) and 95% of variable costs (i.e. other remaining procurement
incidentals) is released. The remaining actual subsidy is released based on
the final audited statements submitted by DCP States.
