Beginning November 1, below poverty level (BPL) families in Andhra Pradesh will get rice at Re 1 a kg through the public distribution system (PDS). Rice is now selling at Rs 18 (PDS quality) a kg in the open market.

This move could well trigger a fresh wave of populist rice schemes in the country.

Mr N. Kiran Kumar Reddy, Chief Minister, said the State would require 3.3 lakh tonnes of rice to be distributed among 2.26 crore families, or 7.5 crore people through PDS. Each family would get 20 kg a month from November 1, marking the AP Formation Day.

The move comes at a time when the CM finds himself under increasing pressure following general strike in the Telangana region. It will put an additional burden of Rs 600 crore on the State Exchequer as subsidy on rice scheme goes up to Rs 2,600 crore a year.

The State had launched the subsidised rice scheme in 1983 by giving rice at Rs 2 a kg when the market price was at Rs 2.46. Though the price came down by 10 paise seven years later, it went on to become Rs 5.25 in 2000 and ruled till 2008, then Rajasekhara Reddy Government reduced it to Rs 2 again in 2008 against Rs 13 market price.

The State has about 2.01 BPL cards, covering 6.8 crore. “We are going to allot 25 lakh more cards soon, covering 70 lakh people,” said an official of Chief Minister's Office.

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