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Govt plans to lower grain price for open-market sale


http://www.business-standard.com/india/news/govt-plans-to-lower-grain-price-for-open-market-sale/445925/

Sanjeeb Mukherjee / New Delhi August 16, 2011, 0:02 IST

line (BPL) rate of Rs 5.65 per kg, how can we ask him to pay an extra Rs 3-4 per kg for another kilogram?” a representative from Uttar Pradesh asked during the meeting.

The issue of high price also dogs the special ad hoc allocations, which the central government makes over and above the normal quantities supplied for distribution through PDS.

In fact, in 2011 alone, 15 million tonnes of wheat and rice has been allocated for BPL and above poverty line (APL) families over and above the normal quantities supplied for both these targeted beneficiaries. However, till June, states have lifted just 54 per cent of the ad hoc additional allocation made for BPL and 21 per cent of that made for APL families.

The problem is more acute in case of additional allocation made for APL families, as their price is more than the ration card rate. “We are thinking of bringing it down to improve the lifting,” the official said.

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