Question : IRREGULARITIES IN FOOD SUBSIDY



(a) whether the food subsidy bill is likely to decline during the current year;

(b) if so, the quantum of subsidy provided during each of the last three years and the current year alongwith the head under which the said subsidy was provided, State-wise;

(c) whether the Government has received any complaints with regard to irregularities in food subsidy given under the Public Distribution System to the families living below the poverty line in the country especially Uttar Pradesh; and

(d) if so, the details thereof and the steps being taken by the Government for the solution of this problem?

Answer given by the minister


MINISTER OF THE STATE IN THE MINISTRY OF AGRICULTURE AND MINISTER OF THE STATE IN THE MINISTRY OF CONSUMER AFFAIRS, FOOD & PUBLIC DISTRIBUTION (PROF.K.V. THOMAS)

(a): No, Madam.

(b): Food Subsidy equal to the difference between economic cost of foodgrains and central issue price is released to the Food Corporation of India (FCI) and to State Government/Agencies for the foodgrains distributed under Targeted Public Distribution System (TPDS) and Other Welfare Schemes (OWS).The food subsidy under TPDS and OWS during the last three years from 2006-07 to 2008-09 is as under:-

Subsidy released (Rs. in crore)

SCHEME 2006-07 2007-08 2008-09
Total Subsidy 23827.59 31259.68 43668.08
Scheme-wise Subsidy
BPL 10149 11685 16157
APL 3349 4673 7294
AAY 7852 9006 12615
TPDS(BPL, APL & AAY) 21350 25364 36066
MDM 1284 1343 2135
Other Welfare Schemes 622 906 1039

During the current year an amount as Rs. 52145.44 crore has been allocated for food subsidy in the budget (BE).

(c): No, Madam. The Department allocates foodgrains to States/UTs @ 35 kg/family/month for 6.52 crore BPL (including AAY) families and State Governments take up the distribution of foodgrains, to the eligible families.

(d): Government has taken following steps to improve functioning of TPDS and also to ensure that entitled quantities of foodgrains of proper qualities get distributed to the eligible families:-

A. to strengthen monitoring and vigilance by:-

(i) implementation of the Nine Point Action Plan;

(ii) taking action against those with Bogus Ration Cards; and

(iii) ensuring greater involvement of Panchayati Raj Institutions (PRIs)/Urban Local Bodies in functioning of FPS.

B. to ensure increased transparency in functioning of TPDS by:

(i) adoption and implementation of revised Model Citizen’s Charter;

(ii) introduction of monthly certification of delivery of foodgrains at Fair Price Shops (FPS) and their distribution to ration cards holders;

(iii) taking up publicity-cum-awareness Campaign on TPDS; and

C. to use ICT tools such as:

(i) computerization of TPDS operations;

(ii) pilot scheme on Smart Card based operations in Haryana and Chandigarh;

(iii) piloting of new technologies for tracking movement of vehicles transporting TPDS commodities.

D. to improve efficiency of FPS operations through;

(i) doorstep delivery of foodgrains;

(ii) ensuring timely availability of foodgrains;

(iii) distribution of wheat flour/fortified wheat flour under TPDS;

(iv) allotment of FPS to institutions and groups;

(v) sale of non-TPDS items by FPSs; and

(vi) revision of commission to FPS licensees.