(a) whether the Government have taken any measures other than increasing the consumer sale price to reduce the amount of subsidy;
(b) if so, the details thereof; and
(c) the estimated savings following these measures?
(a) whether the Government have taken any measures other than increasing the consumer sale price to reduce the amount of subsidy;
(b) if so, the details thereof; and
(c) the estimated savings following these measures?
MINISTER OF STATE IN THE MINISTRY OF CONSUMER AFFAIRS AND PUBLIC DISTRIBUTION
( SHRI SRIRAM CHAUHAN )
(a) Yes, Sir.
(b) The details of measures taken by the Government to reduce the amount of subsidy are
as follows:
1. Open sale of wheat under OMSS(D) at prices above the Central Issue Prices for TPDS in
respect of BPL population;
2. Decentralized procurement and distribution of wheat and rice through States willing to
participate in the scheme; and
3. Reducing handling cost of FCI through
(i) achieving the average capacity utilization
of 75% to reduce the storage cost even though procurement of grain is seasonal;
(ii) ensuring
strict quality control measures during procurement/storage;
(iii) issuing of old stocks,
disposing off C&D category; and
(iv) controlling the administrative cost by following minimum
recruitment of resultant entry level posts irrespective of the increased volume of operations.
(c)
(i) The estimated savings in food subsidy on account of open sale of wheat under
OMSS(D) will depend upon off-take of wheat during the year.
(ii) Scheme of decentralised procurement and distribution of rice has been commenced in West
Bengal from the Kharif Marketing Season 1997-98. For wheat, the States of Uttar Pradesh and
Madhya Pradesh commenced this scheme from the Rabi Marketing Season 1999-2000. The amount of
savings in food subsidy, in this regard is given below:-
RICE Rs./quintal
State Year Economic cost of Economic cost of Subsidy Saving FCI (Actual) State Govt. (per quintal) West Bengal 1997-98 939.33 824.35 114.98 1998-99 974.86 868.40 106.46 1999-2000 1075.45 946.30 129.15 WHEAT
Rs./quintal
State Year Economic cost of Economic cost of Subsidy Saving FCI (Actual) State Govt. 50 kgs. Bag 50 kgs. Bag
Uttar Pradesh 1999-2000 820.00 779.01 40.99 Madhya Pradesh 1999-2000 820.00 751.91 68.09