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Home -> Finance -> Full Story
PDS prices to be cut, allocation to be increased
Wednesday, March 6 2002 15:45 Hrs (IST)

New Delhi: For giving a big push to the lifting of grains under the Public Distribution System (PDS), government will increase the allocation per family and reduce the prices for both below and above the poverty line families (APL and BPL).

"To bring grain stocks to a manageable level, the ministry is working on reducing the PDS prices and hiking the quantum available for every family under the system," Food Minister Shanta Kumar told reporters.

He said the offtake from government stocks this fiscal is likely to touch 300 lakh tonnes, but with a record rabi procurement anticipated this year the government is bracing up for keeping the stocks under check.

The cut in prices for APL families and increasing the allocation for BPL last year has had a positive effect on the offtake, prompting the government to take more steps on the same lines for giving a further push to lifting of stocks.

At present government has a grain stock of over Rs 60,000 crore with a carrying cost of Rs 6000 crore which cannot be sustained in the long run.

"The current system has to change and a number of proposals for bringing about fundamental alterations in the management of the food economy are being mulled," he said.

However till a new system is framed and put in place on the basis of the recommendations of the High-Level Committee on Foodgrains, tinkering will have to be done with the prices and allocation under the PDS.

The minister attributed the recent increase in offtake from government stocks to higher sales under open market scheme, PDS, Antyodaya, and to exports.

PTI







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