Govt assesses revision of CIPs of wheat & rice for APL
The government still has on its anvil a proposal to hike the price of commodities on the Public Distribution System (PDS) for the above poverty line (APL) consumers, persistent food inflation and plans to kick off a food law notwithstanding.
By Prabha Jaganathan, ET Bureau |
NEW DELHI: The government still has on its anvil a proposal to hike the price of commodities on the Public Distribution System (PDS) for the above poverty line (APL) consumers, persistent food inflation and plans to kick off a food law notwithstanding.
The government is examining a proposal to revise the CIPs of wheat and rice for APL category with a view to reducing the difference between the CIPs for APL and market price of wheat and rice, Parliament was told today.
Junior minister for food and PDS, Prof K V Thomas, told the Lok Sabha today that Central Issue Prices (CIP) of wheat and rice supplied to APL families through PDS have not been revised since 2002.
During this period, the government has increased the Minimum Support Price (MSP) in order to provide more remunerative prices to farmers,. He emphasized that costs on account of other incidentals of procurement have also increased. This had led to an escalation in food subsidy and created a large gap between CIP for APL families and open market prices.
The increase in the CIPs of foodgrain will reduce the gap between open market prices of foodgrains and CIPs and is likely to check the diversion of subsidized foodgrains.
The government is examining a proposal to revise the CIPs of wheat and rice for APL category with a view to reducing the difference between the CIPs for APL and market price of wheat and rice, Parliament was told today.
Junior minister for food and PDS, Prof K V Thomas, told the Lok Sabha today that Central Issue Prices (CIP) of wheat and rice supplied to APL families through PDS have not been revised since 2002.
During this period, the government has increased the Minimum Support Price (MSP) in order to provide more remunerative prices to farmers,. He emphasized that costs on account of other incidentals of procurement have also increased. This had led to an escalation in food subsidy and created a large gap between CIP for APL families and open market prices.
The increase in the CIPs of foodgrain will reduce the gap between open market prices of foodgrains and CIPs and is likely to check the diversion of subsidized foodgrains.
Too busy to trade in stocks? Invest in Mutual Funds with ET Money!
Bookmark or read stories offline -
Download ET Markets APP
Download ET Markets APP
ADVERTISEMENT
