New
Delhi: The government has reduced grain rations under
the public distribution system and also raised grain prices
for all but the poorest households. The cut is likely
to reduce the Centre's food subsidy bill by Rs4,524 crore
a year.
Differences
within the Cabinet forced the government to drop a proposed
increase in the issue price of grain for families below
the poverty line, even though it raised the issue price
for rice by 85 paise a kg and for wheat by 95 paise a
kg for the rest.
The central issue prices of grain were last revised in
July 2001.
The Cabinet also decided to cut the monthly grain entitlement
for families below the poverty line by 5 kg to 30 kg a
month. Beneficiary families above the line will now be
entitled to a monthly ration of 20 kg instead of 35 kg.
The Centre had budgeted for a food subsidy bill of Rs26,200
crore in 2005-06. Though the impact of today's changes
will be felt only during the last quarter, it could result
in a saving of over Rs1,000 crore this fiscal year.
With families below the poverty line and those covered
by the
Antyodaya Anna Yojana also getting food benefits under
rural employment programmes, the government feels the
lower rations are adequate to meet the nutritional requirements
of poor households.
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