Food Minister K V Thomas played down the difference between an expert committee formed under the Prime Minister's Economic Advisory Council head and the National Advisory Council on distribution of subsidised foodgrains.He said there was not much difference, and the divergent views relate to only above poverty line families, for which his ministry would hold consultations with the expert group to find a middle path.
Addressing a seminar on "Policy for Foodgrains Storage", Thomas said the ministry was willing to provide subsidised grains to 65-70 per cent of the country's population, including both general and priority households.
At present, the government's cheap food distribution cover almost 68 per cent of the country's population.
"We will introduce the Food Security Bill which will benefit almost 65-70 per cent of the population," Thomas said, adding that the draft bill was at a conclusive stage.
Sonia Gandhi-led NAC had recommended legal entitlement of subsidised foodgrains to 75 per cent of population covering both priority and general households.
Of this, priority sector household comprises 46 per cent of urban population and 28 per cent of rural households, while general category includes 44 per cent urban population and 22 per cent rural population.
The expert group of PMEAC under the chairmanship of Dr C Rangarajan had favoured NAC's stand on priority households, but recommended distribution of cheap foodgrains to general category households only if adequate quantities of grain is available.
Thomas said the matter will be discussed again with the Rangarajan Committee. The government provides 35 kg of food grains to 6.52 crore families below poverty line through ration shops.
Wheat is provided at Rs. 4.15 per kg and rice at Rs. 5.65 per kg. For above poverty line families it provides 15-35 kilogram of foodgrains to every family each month.
Its food subsidy in 2010-2011 is projected to swell to almost Rs. 81,000 crore (Rs. 810 billion) from the budget estimates of around Rs. 68,000 crore (Rs. 680 billion), just based on higher procurement and increased allocations to BPL and APL families.
The expert group constituted by the prime minister says India's food subsidy bill will swell to almost Rs. 92,060 crore (Rs. 920.6 billion) if NAC's recommendations for 75 per cent coverage is accepted.
While, it will be almost Rs. 83,000 crore (Rs. 830 billion) if the suggestions of excluding above poverty line families or reducing their allocations is accepted.
In that scenario, the Subsidy Bill will include outgo made for allocations for other welfare scheme like Annapurna Yojana for the poor senior citizens, apart from that required under the Food Security Bill.
