Union Govt. Rejects Panel’s Suggestion to Reduce Food Subsidy Beneficiary

06 March,New Delhi

Food and Consumer Affairs Minister Ram Vilas Paswan has favoured direct cash transfer of food subsidy to beneficiaries.

Briefing the media in New Delhi, Paswan said that his ministry suggested its implementation on a pilot basis in Chandigarh and Pondicherry.

He said, direct cash transfers could restrict leakages but there are some problems.

The Centre has also outrightly rejected the recommendation of the high-level Committee to reduce the coverage of beneficiaries from 67 per cent to 40 per cent under National Food Security Act.

The Shanta Kumar-led Committee had recommended the government to revisit the UPA’s National Food Security Act.

Food and Consumer Affairs Minister said that the government will continue to pass on the benefit of the Targeted Public Distribution System to the beneficiaries.

He said that the Prime Minister has already clarified in both the Houses of Parliament that the government will not accept the recommendations of the Committee and the coverage of targeted beneficiaries will not be reduced.

Expressing his ministry’s views on the report of the high-level committee led by former Food Minister Shanta Kumar, the Minister said that the government has agreed to procure pulses and oil seeds from farmers at support price, besides rice and wheat.

The Ministry has submitted its views on the recommendations of the panel to the Prime Minister’s Office on Wednesday.

Paswan said, his ministry is also in favour of outsourcing the testing of Food Corporation of India’s foodgrains to private sector and ready to try it on a pilot basis in 25 depots in Chhattisgarh.