BPL passengers get on gravy train, at last

What was a headache till last year has suddenly become a sign of the effective use of food subsidy and pro-public distribution. The subsidy bill for the key food sector is up by a mere Rs 600 crore compared to â€™03-04â€™s bill of Rs 25,200 crore. Compared to the Rs 27,800 crore estimated in the February â€™04 vote on account, in fact, it has fallen way down. For the first time, the lower subsidy bill is not a sign of grain procurement major Food Corporation of Indiaâ€™s (FCI) profligacy or the governmentâ€™s poor food management policy. In fact, the hike is a signal that the Antyodaya Anna Yojana (AAY), designed to cater to the poorest of the BPL consumers of the PDS, has finally found its place in the sun. The AAY has got a subsidy of Rs 3500 crore out of the total food subsidy bill. The scheme, under which the eligible were provided with 35 kg of highly subsidised foodgrain to the tune of 38.2 lakh tonnes last year, has been expanded to reach two crore families. Most of the additional outlay of Rs 600 crore will be devoted to fine-tuning the PDS so that the benefits reach the poorest of the poor, a commitment of the NCMP. That apart, the governmentâ€™s commitment to beef up the PDS is indicated in the proposed pilot scheme for introducing food stamps in three districts of a volunteer state. This would replace food distribution through fair price shops. The new package for FCI, coupled with a strong emphasis on the diversification from rice and wheat procurement, is likely to bring down the food subsidy bill further. Some of the hike in the bill is on account of increased sugar buffer stock maintenance expenses. This has been hiked by Rs 100 crore to Rs 400 crore. Subsidy, as reimbursement to sugar-exporting factories on transport and freight charges, has also been hiked almost three-fold to Rs 125 crore from Rs 50 crore earlier. Oilseeds and pulses, unlike rice and wheat, are subject only to the market intervention scheme and are not procured routinely every crop season. The new focus on diversification is evident in the Budgetâ€™s outlay for oilseeds and pulses development. The outlay for post harvest technology including Technology Mission on Pulses has gone up from Rs 1.35 crore to a whopping Rs 17.75 crore. For integrated development of oilseeds, oil palm, pulses and maize, the outlay is significantly higher, at Rs 151.55 crore, as compared to a paltry Rs 11.75 crore outlay in the last Budget. However, the outlay for areas already identified as priority for boosting diversification, such as horticulture, have got short shrift, with nothing more than the last Budget.

BPL passengers get on gravy train, at last

What was a headache till last year has suddenly become a sign of the effective use of food subsidy and pro-public distribution.

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