Ministers' panel clears draft on Food Bill

An Empowered Group of Ministers (EGoM) Monday approved the draft Food Security Bill, providing subsidised wheat and rice to the poor as a matter of legal right.

The ministers' panel headed by finance minister Pranab Mukherjee cleared the flagship proposal of the UPA government providing foodgrains at a cheap rate to 75% of the rural population and 50% of those living in cities. Thus, 68% of the country's total population will have the food security.

The states which have a crucial role in implementation of the programme will also be taken on board.

The bill after being vetted by the Law Ministry would be before the chief ministers and after that will go to Parliament.

"Our intention is to place it before Parliament in the Monsoon Session," a source said after the EGoM meeting.

Under the Bill a quantity of 7kg per month per person will be given to the 'priority sector' (Below Poverty Line). It will be provided at Rs3 per kg for rice and Rs2 per kg for wheat.

For the general category (Above Poverty Line) the food quantity will be 3-4kg per person. The rate will be half of the minimum support price which the government pays to farmers.

The Food Security Bill, requiring 51 million tonnes of foodgrains will involve an additional subsidy outgo of Rs13,000 crore, taking the total food subsidy to Rs95,000 crore.