The apprehension of State Governments receiving lower food grains under the Food Security Bill is unwarranted, said K.V. Thomas, Minister for Consumer Affairs, who termed it a misconception.
Speaking to the media after inaugurating an investor awareness programme, organised jointly by the NCDEX and Business Line on Monday, Thomas said the Congress-ruled Maharashtra Government also expressed its apprehension on its diminishing food grain supply, after the implementation of the Bill.
After an analysis, however, it was found that the State would be receiving a higher supply and that too at a lower price.
Confirming that the subsidiary burden on the Government would increase to Rs 1.35 lakh crore from Rs 1.09 lakh crore, Thomas said the country could definitely absorb this burden for a good cause.
On the concern of the food security Bill stoking up inflation, Thomas said the Government is concerned about rising food inflation. However, rising inflation is due to various factors such as minimum support price doubling in last five years, increase in petrol prices and change in consumption pattern.
“This is a disturbing trend considering that the Government has a huge inventory of food grains. In fact, we are deliberating to release some wheat at a subsidised rate in the open market,” he said.
On the issue of the Tamil Nadu Chief Minister opposing the Bill, Thomas said that the State gives free rice when the Central Government supplies it at Rs 5 a kg.
“After implementation of the Food Security Act, the Central Government will supply rice at Rs 3 a kg. So the Tamil Nadu Government should be happy that its subsidy bill will come down to Rs 3 a kg from Rs 5 a kg. Moreover, the quality also will be better,” he said.
State governments have taken various measures to deal with bogus ration cards and have cancelled six crore cards in the last three years. The number of ration cards in circulation has come down to 16 crore from 22 crore in the last three years.
The Government is also working on modalities in improve the quality of food grains that would be distributed under the Food Security Act.
On wild fluctuation in the onion and potato prices, Thomas said that the Government is working on a export import policy and has directed Nafed to procure these commodities during the peak arrival season and sell them to the State Governments when they need them.