India’s proposed food security law will cost between Rs 44,000 crore and Rs 1,00,000 crore depending on the quantity of food grains and the number of people the government wants to feed.
# Planning Commission to present to the Empowered Group of Ministers five or six different scenarios with the food subsidy cost to the government.
# The plan panel note has cost scenarios for providing subsidised ration, either 25 kg or 35 kg, to the existing poverty estimate and as per the Tendulkar committee recommendations.
The Planning Commission is expected to present a note on food subsidy cost to the Empowered Group of Ministers on Friday and recommend giving 35 kg food grains to each below-poverty-line (BPL) family.
The EGoM had reviewed its decision to provide 25 kg food grains to the existing 300 million BPL families following the intervention of Congress chief Sonia Gandhi. The group decided to consider giving 35 kg food grains, which poor families get at present, and asked the plan panel to present a paper on the poverty estimate.
The panel is likely to tell the EGoM that it has accepted the Tendulkar committee recommendation of categorising 400 million Indians as poor and will present financial scenarios for distributing food grain at Rs 3 per kg. “Five or six different scenarios with the subsidy cost to the government has been worked out,” a senior Planning Commission official told HT.
The note has cost scenarios for providing subsidised ration, either 25 kg or 35 kg, to the existing poverty estimate and as per the Tendulkar committee recommendations.
Plan panel deputy chairperson Montek Singh Ahluwalia also discussed revamping the public distribution system with food ministry officials and the possibility of using the Unique Identification Number to plug leakages.