BANGALORE: The government is considering cutting by half its quota of subsidised rice for families below the poverty line.
The government is now handing out rice to poor families at Rs 1 a kilo under its Anna Bhagya scheme. A BPL (below poverty line) family gets a monthly provision of up to 30 kg, and the government plans to divert 10 kg of that quota to APL (above poverty line) families.
A government source said a BPL family of three or more will get a maximum of 15 kg under the proposal. An individual gets 5 kg, instead of the present 10.
Chief Minister Siddaramaiah, who has been handing out benefits to his favoured constituency of Ahinda (minorities, backward castes and Dalits), is said to be keen on reintroducing rice quotas for APL cardholders after reports emerged of Anna Bhagya rice being sold illegally in the open market. The move is likely to attract the wrath of BPL families, but will help the government garner the goodwill of over 34 lakh APL families, who will get a maximum of 10 kg and a minimum of 5 kg under the new proposal.
The price for APL families will be higher: about Rs 10 to Rs 15 a kilo. Of the 30 kg quota, the government will be left with 5 kg after it diverts 10 to APL families. It plans to save Rs 750 crore a year by stopping that purchase.
The government plans to divert this money to fund the higher education of students hailing from lower and middle income families from next year.
The proposal, if implemented, will also reduce the subsidy burden as the government will sell rice to APL families at a higher price.
At present, the government spends about Rs 4,500 crore in subsidies to provide rice for over 1.03 crore BPL cardholders.
When contacted, Food and Civil Supplies Minister Dinesh Gundurao confirmed such a proposal was before the government.
“Nothing has been finalised about how much rice APL families should be given and how many families will be covered,” he said.
He said APL families had been seeking restoration of their subsidised rice quota since it was stopped in 2013.
“There was also a feeling that 30 kg for a family was a little too much,” he said, reiterating that no decision had been taken either way.
Since July 2013, the government has diverted 84,000 MT of rice meant for APL families to meet the increased demands of its Anna Bhagya scheme.
Karnataka requires a maximum of 2.84 lakh MT of rice a month, while it is getting just 1.77 lakh MT from the Centre.
It is procuring the remaining 1.07 lakh MT through the open market, and at a much higher price.
The new proposal is likely to be introduced from Deepavali (October 24) or before January 2015, sources said.