State wants Centre to foot 90% of food security bill
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06/10/2013
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Times Of India (Mumbai)
Even before it is put into execution, UPA-II’s big-ticket scheme, the Food Security Bill, seems to be facing hurdles from within.
The Congress-led government in Maharashtra has told the Centre that it is already facing a severe financial crunch and is capable of footing only 10% of the Rs-600 crore annual cost that is needed for transportation, storage and distribution of grains to implement the food security programme in the state. In Maharashtra, subsidized food will be distributed to over 7 crore people.
The Centre is believed to have told the state that it can give at the most 50%, that is around Rs 300 crore, of the cost. The dispute, which is yet to be resolved, signals a bumpy ride for the project ahead of the parliamentary polls and assembly elections in a few states.
State’s food and civil supply ministry, headed by NCP’s Anil Deshmukh, said that Maharashtra would have to distribute a minimum of four lakh metric tonnes of food across the state. “Though the Centre is taking care of the cost of grains, which is around Rs 800 crore, the cost of transportation and distribution will be as big as Rs 600 crore annually. Talks are underway to decide as to how to share the expenses and we hope to resolve the issue soon,” he told TOI. He said that infrastructure in the state was almost ready and the scheme could be rolled out from December.
Under the scheme, wheat will be distributed at Rs 2 per kg, rice at Rs 3 per kg and jowar at Re 1 per kg. In case if a beneficiary doesn't get subsidized food grains in a month then s/he will be given food security allowance.
Another hurdle in the scheme’s implementation is that at present, the state distributes grains to around one crore people across the state and has data of only around 8.5 crore people against Maharashtra’s population of over 11 crore, said a source. “Updating data and ensuring inclusion of all eligible people in the scheme is a challenge,” said a source.
Meanwhile, NCP leader and union agriculture minister Sharad Pawar insisted that it was necessary to become self-reliant in grain production to avoid burden on the country’s imports and to make the scheme a grand success. He was talking to mediapersons in New Delhi.
MAHA STATS
Population of state | 11.23 crore People eligible for the scheme | 7.17 crore—4.70 crore in rural areas and 2.30 crore in urban areas At present, only 1 crore people get ration under the Antyodaya scheme No. of godowns in the state | 1,024 (5.62 lakh tonne storage capacity) 611 new godowns being created at a cost of 2,000 crore. 70% of the godown project work is complete. These new godowns will create an additional storage capacity of 13.5 lakh tonne THE FOOD BILL
One kg rice, wheat and jowar will be offered to each person at 3 per kg, 2 per kg and 1 per kg respectively every month