Date:29/09/2007 URL: http://www.thehindu.com/2007/09/29/stories/2007092959810100.htm

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Rice at Rs. 2 a kilo for BPL families

Special Correspondent

Chief Minister seriously contemplating re-introduction of scheme

Telugu Desam not amused by YSR’s plans
Final decision at Cabinet meeting on October 1

HYDERABAD: Chief Minister Y. S. Rajasekhara Reddy is seriously contemplating revival of the late N. T. Rama Rao’s pet scheme of supplying rice at Rs. 2 a kilo to all families living below the poverty line (BPL).

He asked Finance Minister K. Rosaiah to estimate the additional funds required for the subsidy scheme and the Civil Supplies Department to work out modalities for implementing it. At present, the rice subsidy scheme is being implemented in a diluted form by selling rice at Rs 5.25 a kg to white cardholders through ration shops.

A firm decision on re-introducing the rice subsidy scheme, which, according to quick estimates will place an extra burden of Rs. 1,200 crore on the exchequer, will be taken at the Cabinet meeting on October 1.

Immediately after Dr. Reddy’s plans were revealed, the Telugu Desam Party cried foul saying that the Chief Minister had ‘hijacked’ its proposal to announce inclusion of the rice subsidy scheme in its election manifesto. The TDP Polit Bureau was discussing the proposals which got leaked. The TDP itself faced a barrage of similar charges on Friday over its move to include free power supply in its manifesto.

The Chief Minister’s office, however, claimed Dr. Reddy had been toying with the idea for sometime to ensure food security to the poor, as he was now able to provide them with a house under Indiramma and low-interest loans. His sudden proposal, however, fuelled speculation that he did so only after getting an assurance from the Centre to liberally fund the rice subsidy scheme. Mr. Rosaiah told The Hindu later that “whether one believes it or not, the Chief Minister always wants to do something for the poor. He has already gone the extra mile by implementing many welfare schemes like Arogyasri which are not mentioned in the Congress party’s manifesto”. The Minister did not indicate the dates for implementing the scheme.

Existing scheme

The rice subsidy scheme may benefit 1.86 crore people. Under the existing scheme, 2.42 lakh tonnes of rice is provided every month to 1.71 crore beneficiaries at Rs 5.25 per kg (annual burden Rs 1,012 crore). Besides, 55,000 tonnes of rice is supplied a month to 15.5 lakh beneficiaries at Rs 3 a kg (Rs 901 crore) under Antyodaya Anna Yojana, a Central scheme.