Centre’s Food Bill may ease state’s atta-dal burden

Friday, 17/02/2012

http://www.tribuneindia.com/2012/20120218/punjab.htm#5

The Food Security Bill proposed by the Union Government would not only satiate the hunger of the poor but may also take the burden of the atta-dal scheme off the state's shoulders with Punjab already reeling under a financial crisis.

While the Centre has proposed flour at Rs 2 a kg for the Below Poverty Line (BPL) families, the state government has been providing it at Rs 4 a kg. In addition, Punjab gives away lentils at Rs 20 a kg and has incurred a bill of Rs 1,300 crore on 15 lakh beneficiaries under the atta-dal scheme over the past over four years.

Both the SAD and the Congress have, in their poll manifestos, have promised flour at Re 1 a kg. Therefore, whichever party forms the government, Punjab would only have to pay a rupee extra for the subsidised flour. The Bill, expected to be passed by April, proposes giving away 7 kg of wheat a month at the rate of Rs 2 per kg to every person belonging to a BPL family.

The Food and Civil Supplies Department has identified 74.28 lakh beneficiaries under this category.

Also, those belonging to Above Poverty Line families would be given 3 kg of wheat a month at half its minimum support price. As many as 1.75 crore beneficiaries have been identified under this category.

With the Union Government proposing the Bill, various public sector undertakings, including PUNSUP, MARKFED, Warehousing Corporation and Punjab Agro, have heaved a sigh of relief. As the state government had not set aside any money in the budget for the atta-dal scheme, the burden had to be borne by these departments. Punjab is already under a debt of Rs 72,000 crore.

How Punjab may stand benefited

  • The state government provides wheat at Rs 4 a kg to BPL families under the atta-dal scheme
  • The Centre's Food Security Bill, however, promises wheat at Rs 2 a kg
  • Both the SAD and the Congress have promised flour at Re 1 a kg
  • Therefore, no matter which party forms government, Punjab will have to spend only a Re extra on wheat

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