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Will pay cash instead of free rice to BPL families, says Siddaramaiah

Karnataka chief minister Siddarmaiah said the state government will provide cash instead of five-kg additional rice, under the Anna Bhagya scheme

Updated on: Jun 29, 2023, 24:48:30 IST
By , Bengaluru
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The Karnataka government will provide cash instead of five-kg additional rice, under the Anna Bhagya scheme, to below-poverty line (BPL) families, chief minister Siddaramaiah announced on Wednesday, citing scarcity of the food grain.

Karnataka chief minister Siddarmaiah said the state government will provide cash instead of five-kg additional rice, under the Anna Bhagya scheme. (HT Photo)
Karnataka chief minister Siddarmaiah said the state government will provide cash instead of five-kg additional rice, under the Anna Bhagya scheme. (HT Photo)

A total of 10 kg free rice every month to every member of a BPL household was one of the five promises made by the Congress ahead of the last month’s assembly elections in the southern state.

In a cabinet meeting, chaired by Siddaramaiah on Wednesday, it was decided that the state government will provide 170 cash ( 34 per kg) to each member of a BPL family per month instead of five-kg rice, until the procurement of food grain is resolved. The remaining five kg rice under the Anna Bhagya scheme will be provided by the Union government.

Talking to reporters after the cabinet meeting, Siddaramaiah said the cash payments would continue until the government is able to procure rice from the open market.

“We are initiating open market tenders. I have instructed officials to call tenders tomorrow (Thursday). Since we promised to provide 10 kg of rice from July 1, the cabinet has decided to give cash at the rate of 34 per kg, which is the Food Corporation of India (FCI) rate, to BPL ration cardholders,” he said. “The money will be transferred directly to the bank accounts [of beneficiaries] through the direct benefit transfer system.”

The chief minister said cash transfer provision may continue for two to three months. “It will take at least two months for the tender process to finalise. We will continue providing cash until we are able to procure the rice,” he added.

The ruling Congress in Karnataka has blamed the Bharatiya Janata Party (BJP)-led Centre for the current shortage of rice. It alleged that the Union government has discontinued the sale of wheat and rice under the Open Market Sales scheme to states.

“The FCI agreed to provide 208,425 metric tonnes of rice to Karnataka. However, on June 13, they sent a letter stating that states cannot be provided with wheat or rice under the Open Market Sales Scheme. The central government has made a political decision to withhold rice from Karnataka in order to defame the Congress government,” Siddaramaiah alleged.

After the FCI’s refusal to provide rice, the Congress government approached several rice-producing states, but they were unable to meet Karnataka’s requirements.

“In our efforts to source rice, we have reached out to Andhra Pradesh, Telangana, Chhattisgarh, and Punjab. However, they are not ready or able to provide us with a continuous supply of rice or the quantity we need. We require 29,000 metric tonne of rice per month,” he added.

While Telangana has offered to provide paddy instead of rice, Andhra Pradesh said they could only provide 50,000 metric tonnes of rice. Punjab said they can only provide rice starting from November, and Chhattisgarh has offered to provide 150,000 tonnes of rice in a single shipment, he said.

“Additionally, these states were charging 39-40 per kg. Since the FCI was charging us 34 for rice and 2.60 for transport and commission, we have decided to provide 34 per kg in cash,” the CM added.

The Opposition BJP, however, attacked the state government for reneging its pre-poll promise and questioned the rationale behind the proposed cash amount.

“In the market, rice is currently priced at 50-60 per kg. If they provide only 34, what can people do? …It is equivalent to receiving only 2.5 kg of rice,” senior BJP leader and former chief minister Basavaraj Bommai said. “They are backtracking on their promises. Earlier, they reneged on providing free electricity, and now they are doing the same for rice. We will decide on our course of protest in the coming days.”

Taking a dig at Siddaramaiah, Bommai added: “…When one of our leaders suggested providing cash, Siddaramaiah had questioned whether people can eat money. Now they are doing exactly that. Now, can people eat money?”

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