Union Budget 2015-16 India Update : Food subsidy of Rs 8,228 cr released to 5 states under NFSA

Under the National Food Security Act, the Centre has released Rs 8,228.01 crore so far this fiscal, to five states where procurement of grains is decentralised.

In a written reply to the Lok Sabha, Minister of State for Food Raosaheb Patil Danve informed that five states — Bihar, Punjab, Madhya Pradesh, Chhattisgarh and Rajasthan — have been released Rs 8,228.01 crore as subsidy for implementation of the food security act. As of now 11 states have started implementing the food law.

Of that, five states have decentralised procurement system, where they procure grains themselves and hand over additional stock to Centre. The remaining 6 states have centralised procurement where FCI procure the entire output on behalf of Centre. The minister also informed that so far 21.38 million tonnes of foodgrains have been allocated to 11 states under the Act.

The states which have started implementing the Act are: Bihar, Chhattisgarh, Delhi, Haryana, Himachal Pradesh, Karnataka, Madhya Pradesh, Maharashtra, Punjab, Rajasthan and Chandigarh.

In another reply, Danve said that as per the provisions of food law, identification of eligible households for receiving subsidised foodgrains under Targeted Public Distribution System (TPDS), is entrusted to state governments. While replying to another question, the minister added that there is no proposal for any amendment to the act.

Danve also said that direct transfer of cash subsidy is one of the options discussed in various fora for checking diversion of foodgrains. And it can be taken up on specific requests from states/UTs.

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