Cabinet approves Food Security Bill

19 December 2011: Paving the way for subsidised foodgrains to poor, the government today cleared the Food Security Bill that seeks to give legal entitlement of cheaper food to over 63 per cent of the population that will cost an additonal subsidy of Rs 27,663 crore.

Under the Bill cleared at a special meeting of the Cabinet, chaired by Prime Minister Manmohan Singh, each person of the priority household, similar to Below Poverty Line families under current Public Distribution System (PDS), will be supplied seven kg of rice, wheat and coarse grains per month at the rate of Rs 3, Rs 2 and Rs 1 per kg respectively.

The implementation of this will result in higher food subsidy by Rs 27,663 crore taking the overall figure to about Rs 95,000 crore. The Government will require 61 million tonne of foodgrains to provide food security as against 55 million tonne required now under the PDS. Besides cheap foodgrains to the poor, the Bill also seeks to provide minimum three kg of foodgrains per month per person under general household category at rate not exceeding 50 per cent of the Minimum Support Price. The government has also made a special for pregnant women and lactating mothers, children, destitutes, homeless and people under starvation among others.

Source: Economic Times