Free grains likely for 25 million poorest of poor families

NEW DELHI: The Centre is likely to provide 'free of cost' foodgrain to the poorest of the poor families under the Antyodaya Anna Yojna ( AAY) which would benefit nearly 25 million families across the country. This is being seen as yet another step by the government to push its 'pro-poor' image just days before it completes two years in office.

Sources said the food ministry will present this proposal under a "New Scheme for Food Security" on Wednesday when the PMO takes up improvements in the present National Food Security Act (NFSA). TOI on Tuesday first reported how there is a proposal to include this new scheme in the NFSA through legislation, which may be named after a freedom fighter.

At present, AAY families get 35 kg of foodgrain per household per month while the rest of the people covered under the Act (priority families) get 5 kg per person per month. The rates are Rs 3, Rs 2 and Rs 1 per kg for rice, wheat and coarse grains, respectively, for both categories. Under the Targeted Public Distribution System (TPDS), AAY was introduced in 2000 by the Vajpayee government to address the problem of hunger among the poorest of the poor.

The proposed supply of foodgrain to AAY families will increase the subsidy burden, which is at present about Rs 1.39 lakh crore. "Currently, the Centre bears almost 90% of the cost of foodgrain provided under NFSA. But, simply by paying 5-8% subsidy, the states have been claiming credit for providing foodgrain almost free. The new scheme will put the record straight," said a government source. In fact, though the Modi government has pursued several systemic changes for success of NFSA, which already covers over 700 million people, it doesn't seem to have reaped political benefits. Sources said the new scheme would include many of these initiatives, including greater use of IT, to ensure identified beneficiaries get their entitlement.

Recently, food minister Ram Vilas Paswan told the Lok Sabha that states such as Uttar Pradesh and Bihar have contributed little for implementation of NFSA and yet try to claim credit for the scheme.