SC effect? 25 lakh tonnes of grain for poor as PR boost

NEW DELHI: With the government due to file a response in the Supreme Court on Monday to suggestions ranging from distributing free foodgrains to the poor to planning more storage, an empowered Cabinet committee on Thursday decided to offer an additional 25 lakh tonne of grains to the states.

The foodgrains will not be free of cost but at below-poverty-level rates while the number of such beneficiary families is likely to be increased. It had been proposed that number of BPL families be increased from the current 6.25 crore to around 7.5 crore. A fresh BPL survey will also be expedited.

With the government having to face a concerted opposition onslaught after the SC pointed out that the suggestion for free or low cost foodgrain was very much part of its order, there was a strong sense of unease in Congress circles over the UPA regime being seen as “insensitive” to the needs of the poor.

The plea that food rotting in the open after being procured would be better utilised if given to the needy was hard to refute. Bland economic arguments that the government could hardly bear an additional cost over BPL foodgrain which it bought at Rs 15 a kg and sold at Rs 2 and 3 a kg are somewhat inadequate . The inefficiency of the FCI storage could not be mitigated by claims that excess procurement was due to last year’s drought and intended to ensure food security.

The government has previously offered central foodgrain under the open market scheme but few states availed of it. This time the foodgrains are being offered at BPL rates and, as a measure of the government’s intent, may convince the apex court. The SC has, however, touched on other measures like doing away with the above poverty line criteria and the need for new storage facilities in all states.

The more immediate issue — of providing a politically correct formulation for the SC and warding off criticism that the government would sit tight on foodgrain rather than allow it to be given to the poor — was the essential agenda that the empowered GoM, headed by finance minister Pranab Mukherjee, considered.

“As an interim ad-hoc measure, pending a final decision on the issue, the government is releasing an additional quantity of 2.5 million tonnes of wheat and rice to states at a BPL price for the next six months,” agriculture and food minister Sharad Pawar said. He also said the government is considering an overhaul of the PDS system.

The government has been considering the Tendulkar committee figure of 8.4 crore for its proposed national food security act and the figure of 7.5 crore families is a 1993-94 projection of 6.25 crore beneficiary households.