Govt studying feasibility of providing food subsidy in cash
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Last Updated: Tuesday, August 03, 2010, 23:21
  
New Delhi: The government today said it has prepared a draft scheme to check the feasibility of providing food subsidy in cash to the poor instead of foodgrain, on a pilot basis in select districts of three states.

Haryana, Uttar Pradesh and Delhi have submitted proposals for direct disbursement of food subsidy in cash to the below- the-poverty line (BPL) families on a pilot basis instead of distributing foodgrain through the public distribution system.

"Based on these proposals, a draft scheme has been prepared to test the feasibility of transferring food subsidy in cash to the BPL families," Minister of States for Food and Agriculture KV Thomas told the Lok Sabha in a written reply.

The draft scheme has been referred to the Finance Ministry for approval of the committee on non-Plan expenditure, he said.

Currently, the government provides 35 kg of foodgrain every month to 6.52 crore BPL families at subsidised price through the PDS network. It also supplies 10-35 kg wheat and rice per month to 11.5 crore APL families at cheaper rates through the same. The BPL families get wheat and rice at Rs 4.15 a kg and Rs 5.65 a kg respectively, while APL gets wheat and rice at Rs 6.10 and Rs 8.30 a kg.

PTI


First Published: Tuesday, August 03, 2010, 23:21


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