Govt to sell pulses, cooking oil at cheaper rate via PDS

To protect BPL families from possible price rise, the Cabinet Committee on Economic Affairs (CCEA) today gave its approval for selling imported pulses and edible oil at subsidised rates through ration shops.

The CCEA also approved an outlay of Rs 884 crore for computerisation of public distribution system (PDS) that is aimed, among other things, elimination of bogus ration cards.

Announcing the decisions, Finance Minister P Chidambaram said, "The CCEA today gave its approval for introducing a variant of the earlier scheme for subsidised distribution of imported pulses through PDS with a subsidy of Rs 20 per kg."

The scheme on pulses, which was discontinued in June, will be relaunched for six months till March 31, 2013. Four lakh tonnes of imported pulses would be supplied at an higher subsidy.

In the earlier scheme, 6.52 crore BPL families were supplied pulses at a subsidy of Rs 10 per kg.

Similarly, the government has approved extension of a scheme for supply of 10 lakh tonnes of imported edible oil via PDS for one more year till September 30, 2012 at a subsidy of Rs 15 per kg.

The schemes on pulses and edible oil are aimed at protecting BPL (Below Poverty Line) families as retail prices of these two commodities are expected to be under pressure in the wake of a possible fall in production.

The CCEA also decided to continue the ban on export of edible oil as domestic availability would be lower this year because of poor monsoon.

However, it permitted export of edible oil in branded packs of up to 5 kg with a quantitative restriction of up to 20,000 per annum with effect from this month. On the 12th Five Year Plan scheme on 'End-to-end computerisation of PDS, Chidambaram said, "The CCEA approved the component-I of the plan scheme with an outlay of Rs 884 crore on a cost sharing basis."

The Centre and state will bear the cost equally barring north eastern states, where Central government will fund 90 per cent of the cost, he said.

"Shares of government of India and state government/union territories are estimated at Rs 489.37 crore and Rs 394.7 crore, respectively," he added.

The outlay has been provided for digitization of ration cards/ beneficiary and other databases, computerisation of supply-chain management, setting up of transparency portal and grievance redressal mechanisms.

The digitisation of beneficiary database and computerisation of supply-chain are expected to be implemented by March, 2013 and October, 2013 respectively, an official statement said.

 

[Dhruv Bindhani]

On October 4, 2012, the Cabinet Committee on Economic Affairs (CCEA) approved significant measures to safeguard Below Poverty Line (BPL) families in India from potential price increases in essential commodities.

Key Decisions:

1. Subsidized Pulses Distribution: The CCEA re-approved a scheme for the subsidized distribution of imported pulses through the Public Distribution System (PDS). This scheme, which had been discontinued in June 2012, was relaunched for six months, effective until March 31, 2013. Under this variant, 4 lakh tonnes of imported pulses would be supplied with a higher subsidy of ₹20 per kg, an increase from the previous ₹10 per kg. This aims to protect BPL families, as domestic pulse production was anticipated to fall.
2. Subsidized Edible Oil Supply: The government extended a scheme for supplying 10 lakh tonnes of imported edible oil via the PDS for another year, until September 30, 2012. This would be provided at a subsidy of ₹15 per kg. This decision was also driven by concerns over potential retail price pressure due to expected lower domestic production, partly attributed to a poor monsoon.
3. Edible Oil Export Ban: The ban on the export of edible oil was continued to ensure sufficient domestic availability. However, a limited exception was made, permitting the export of edible oil in branded packs of up to 5 kg, with a quantitative restriction of 20,000 tonnes per annum, effective from October 2012.
4. PDS Computerization: A crucial approval was given for the "End-to-end computerisation of PDS" under the 12th Five Year Plan. Finance Minister P. Chidambaram announced an outlay of ₹884 crore for Component-I of this scheme. This initiative aims to enhance transparency and efficiency in the PDS by:
   
   • Digitization of Ration Cards/Beneficiary Databases: Expected to be implemented by March 2013, this measure aims to eliminate bogus ration cards and improve the targeting of subsidies.
   • Computerization of Supply-Chain Management: Scheduled for implementation by October 2013, this will track the movement of foodgrains up to the Fair Price Shop (FPS) level, addressing leakages and diversions.
   • Setting up Transparency Portals and Grievance Redressal Mechanisms: These include SMS, email, and toll-free numbers to inform beneficiaries about supplies and allow them to register complaints, thereby strengthening the PDS's functioning and accountability.

The cost of PDS computerization would be shared equally between the Centre and states/union territories (50:50), except for North Eastern states, where the Central government would fund 90% of the cost. The estimated shares were ₹489.37 crore from the Government of India and ₹394.7 crore from states/UTs.