Amma Canteens to continue getting subsidised rice, wheat

According to a government order dated December 27, Tamil Nadu Civil Supplies Corporation (TNCSC) would send around 740 tonnes of rice and 350 tonnes of wheat at a subsidised cost of Re 1 and Rs 17.25 per kg every month. The government order also has written off around Rs 74 crore, the amount which the TNCSC had sought from the civic body for supplying the grains.

Earlier, when the civic body opened Amma Canteens, a government order was issued in 2013 to supply 500 tonnes of rice at Re 1 per kg every month for only six months. Later, the rice supply was increased following an increase in the number of canteens. The civic body procures vegetables and LPG cylinders from the cooperative department’sshop in Triplicane.

Meanwhile, following audit objections, the TNCSC had requested the Chennai Corporation to pay market rates for rice and wheat it supplied for the canteens. This was in regard to the first government order that ordered subsidised rice and wheat for only six months.

“Chennai Corporation had requested the government to write off the difference amount (Rs 74 crore) and to continue supplying the food items at a subsidised rate. Based on this, TNCSC is directed to supply grains for one year at a subsidized cost,” the government order stated.

The order also pointed out that 407 Amma Canteens functioning in the city had been running into a loss of Rs 483.75 crore since the financial year 2013-2014. While the expenditure for the last six years stands at Rs 668.61 crore, the civic body had managed to earn only Rs 184.86 crore from sales. This is mainly because of the low cost of food items sold at the canteens.

A recent survey conducted the civic body revealed that around 85 per cent of Amma Canteen customers belong to poor families. Of the total of 5.38 lakh customers (respondents) covered during the survey, around eight per cent were students and seven per cent were elderly. It is also transpired that 24 per cent of the customers are construction workers.

The civic body also sent a proposal to the State government pertaining to the revival of Amma Canteens, which awaits government approval.