AICC says Karnataka cash-transfer scheme a befitting reply to centre

As the Congress government of Karnataka on Monday launched a direct money transfer scheme to the poor as a temporary monetary substitute till it finds a way to roll out its promised 10 kg of rice free monthly to all families below the poverty line (BPL), the AICC hailed it as a befitting reply to the Modi government.

The Centre had "cancelled the approval" for the Food Corporation of India (FCI) to supply the additional rice required by the state. The Karnataka government, meanwhile, is in the middle of negotiations to purchase additional rice from Congress-ruled Chhattisgarh.

"The cash transfer scheme (Rs 170 every month to each of the 4.42 crore persons in the state covered by ration cards) launched today (Monday) by the Congress Government in Karnataka is a befitting reply to the Modi government's vindictive policies with regard to food security for the poor, especially in a state where the BJP was comprehensively rejected. These policies do not make for cooperative federalism that the PM likes to boast about. Instead, they reflect confrontational federalism at its petty worst," said an official statement from Jairam Ramesh, AICC communication in-charge.


Pointing out that the promised rice scheme -- the "Anna Bhagya guarantee" -- meant a doubling of the entitlement, Ramesh pointed out: "On June 12, 2023, FCI had agreed to supply additional rice required for which the state government had agreed to pay Rs 34/kg. But, just a day later, the Modi government cancelled the approval while allowing FCI to continue selling rice at Rs 20/kg to ethanol producers".

Citing the direct cash transfer as proof of the Karnataka government's resolve not to be shaken in implementing its guarantee, he said the FCI too lost out in the process because of the Centre's decision. "This (money) transfer is equivalent to the amount the state government would have paid the FCI had the Modi government not intervened at the last minute and stopped the sale of rice even though there are ample buffer stocks available".