Govt to supply extra 5 mn tonne foodgrain to BPL families

New Delhi: The government on Wednesday decided to allocate an additional 5 million tonne of foodgrains to families below the poverty line (BPL), entailing a whopping subsidy of Rs 9,471 crore.

The government supplies rice and wheat at subsidised rates of Rs 5.65 per kg and Rs 4.15 per kg, respectively, to 6.52 crore BPL families via ration shops.

"The Cabinet Committee on Economic Affairs (CCEA) has approved an allocation of 5 million tonnes of foodgrains to States and Union Territories in 2013-14 for BPL families," an official statement said.

The additional allocation of 50 lakh tonnes will remain valid for lifting up to March 2014 or till the National Food Security Bill is passed by Parliament and implemented in the respective states, it said.

"The estimated subsidy on additional allocation foodgrains for BPL families at BPL prices will be Rs 9471.22 crore," the statement said.

Keeping in view surplus foodgrains stocks and requests from states, the Centre has been allocating extra foograins to 6.52 crore BPL families since 2010.

As of July 1, foodgrain stocks in government godowns more than doubled to 73.9 million tonnes, as compared to the requirement of 31.9 million tonnes.

For BPL families, the government had in May allocated 6 million tonnes of extra foodgrains for this fiscal. Last month, it had approved the sale of 10.5 million tonnes of foodgrains in the open market to check rising prices.