Rice cost behind TN’s decision to accept Food Safety Act

The Centre’s monthly allotment of rice to TN was 2.96 lakh MT of the total PDS offtake of 3.23 lakh MT. Additional rice needs over and above BPL, APL and AAY (Antothya Anna Yojana) for the PDS was met through allocation of 27, 969 MT every month at Rs 5.65 a kg (BPL rate) till June this year costing the state exchequer Rs 2,393.30 crore annually for 38.93 lakh MT rice. As TN did not implement NFSA, the Centre said that in addition to no supplementary allocation of APL and BPL rice, MSP rates of Rs 22.54 per kg would be followed as against the APL category rates of Rs 8.30 per kg for annual allocation of 15.15 lakh MT. 

The state government realised that it would have to incur additional expenditure of Rs 2,730.95 crore annually over and above the current expenditure of Rs 2,393.30 if NFSA was not implemented. Under the new scheme, all cardholders including children will get 5 kg rice per head and the state will ensure that “the quantity supplied under the new system is not less than the present entitlement under the universal public distribution system” followed by the State government. “There shall be no upper ceiling of 20 kg rice per card per month.”

 Also “rice would be supplied free to all rice card holders.” Under the new rule one adult in a family will entitle the family to 12 kg though under NFSA it should only be 5 kg. If there are two adults, they will get 16 kg (12kg + 4kg) though entitlement under NFSA is only 10 kg. A family of 5 (3 adults + 2 children) they will get 25 kg and if there are 7 in a family, they will get 35 kg. Under AAY, allocation will continue to be 35 kg free of cost. Implementation of NFSA and continuation of the UPDS results in the government bearing additional expenditure of Rs1,193.30 crore. The State government proposes to set up a food commission to monitor and review NFSA implementation. The scheme will be operational in the state excepting Thanjavur, Aravakurichi and Tiruparankundram.