BENGALURU: With the Lok Sabha elections just months away, the central government has come out with a scheme to sell the Bharat brand of rice directly to consumers at an unbelievable Rs 29 per kg. The staple in the Indian diet will be available at select outlets in the next fortnight.
This could be a game changer ahead of the elections, sources pointed out. It may also affect the Congress state government’s scheme to distribute 10 kg free rice for BPL ration card holders per month, even as it has been struggling to source the grain since it came to power eight months ago. It now gives 5 kg free rice through public distribution system (PDS) shops, while depositing the amount equivalent to the rest of 5 kg at Rs 34 per kg directly into the accounts of beneficiaries.
The Centre’s new strategy is like applying salt over state government’s wounds, some in the government said.
State Food Minister KH Muniyappa, asked whether the state government can buy rice directly from the National Agricultural Cooperative Marketing Federation of India or the National Cooperative Consumer Federation of India, said, “They will not sell directly to the state government.’’ The Centre, however, is sourcing rice from FCI and selling through these two agencies.
Over the last few months, Muniyappa has held dozens of meetings with different agencies and rice millers, but failed because the rice procurement under law lies with the Food Corporation of India and also because rice prices have gone up. “The Union government will not lift a finger to help the state government,’’ Muniyappa said.
On the Centre selling rice directly to consumers, he said, “They have procured rice at up to Rs 38 per kg and they cannot keep it in godowns forever. That is why they are releasing it to the market.”
He said, “We need 2 lakh tonnes to 2.5 lakh tonnes. We are not able to procure it because of the ban.’’
Bengaluru Central MP PC Mohan said, “It is only an inflation-control mechanism, considering rice prices have gone up 15-20 per cent.”
Food expert and FCI former chairman DV Prasad said it is a strategy to counter inflationary trends. “I myself had made this suggestion to directly sell to consumers to counter inflation, many years ago,” he added.
Sources said, “Rice will be available at Kendriya Bhandars and other select outlets. At Rs 29 per kilo, 5 kg rice will cost Rs 145, while the state government is giving Rs 170 cash to beneficiaries.”
In the country, 81 crore individuals are covered under the public distribution system as they hold below-poverty line (BPL) cards. The rest of the over 60 crore people are considered middle class or rich, and they too can purchase rice at Rs 29 per kg. But the outlets offering this rice could be few and most of them will be situated in New Delhi and other major cities.