To prevent State governments from taking credit for supplying cheap rice and wheat to the poor under the National Food Security Act (NFSA), the Centre has asked them to display on fair price shops the subsidy being borne by the Centre and States.
“It is unfortunate that most States are taking credit for this even though the entire foodgrain subsidy is borne by the Centre. So, we have asked States to display the details at public distribution system shops,” Food and Public Distribution Minister Ram Vilas Paswan told reporters.
According to a letter sent to the States on April 11, the Centre’s advisory wants the States to display a tabular format on notice boards of all fair price shops for the “awareness of the public, including the beneficiaries.”
According to the table, the wheat and rice cost to the Centre in 2017-18 is ₹24.09/kg and ₹32.64/kg, against the NFSA distribution price of ₹2 and ₹3, respectively. “The difference in subsidy being borne by the Centre is ₹21.09 (wheat) and ₹29.64 (rice),” says the letter, adding “further subsidy, if any, being borne by the State government” may be added.
Making a special mention of Bihar Chief Minister Nitish Kumar, Paswan, who hails from the State, said: “More public awareness is required on this issue because, for instance, in Bihar the poor think that Nitish Kumar is giving foodgrains at ₹2-3/kg. People are not aware that the Centre was providing it.”
The Centre’s annual food subsidy bill is over ₹1 lakh crore.