Plan panel firms up food security law proposals

The Centre has firmed up proposal on setting up facilities for foodgrain storage and reforming the public distribution system (PDS) to plug leakages. This is mandated in the proposed national food security law cleared by a Cabinet committee.

The Centre has firmed up proposal on setting up facilities for foodgrain storage and reforming the public distribution system (PDS) to plug leakages. This is mandated in the proposed national food security law cleared by a Cabinet committee.

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Finance minister Pranab Mukerjee, who heads the empowered group of ministers that approved the law, had asked Planning Commission deputy chairperson Montek Singh Ahluwalia to finalise the two vital aspects to implement the law.

For setting up adequate decentralised storage, the plan panel has finalised a public-private partnership (PPP) proposal for setting up silos with capacity of 50,000 metric tonne foodgrain.

India faces a shortage of storing facility of about five mt of foodgrain depending on production. With India requiring food storing capacity of about 300 mt to meet the demand under the new law, storage facility is vital.

As per the plan, states will have to provide land to private partners to build storage facilities. A firms will get R6 per tonne every month as the rental for storage in first three years. "The prices will be revised as per inflation trends," an official said. The Food Corporation of India will bear the rental cost.

On introducing cash transfer of food subsidy, the panel has submitted a plan in which each below poverty line family will get a unique identification-linked smart card, which the holder will be able to get his monthly quota of ration.

As per the new model, the fair price shop owner will get foodgrain at the issue price plus transportation cost. “Instead of the fair price shop owner getting the subsidy, the poor consumer will get it resulting in no incentive to sell food grains in the open market,” a senior plan panel functionary said.