Prices of 4, 000 Tonnes Foodgrain Sanctioned for U’khand Sky-High

NEW DELHI, July 19, 2013: On June 21, four days after Uttarakhand's calamitous floods, the Centre sanctioned 4,000 tonnes of foodgrain for the stricken state. However, the seemingly generous handout came with a steep price tag - rice and wheat will be provided at an "economic" cost of Rs 26 and Rs 20 a kg. 

At a time when Congress-led UPA is going gaga over its food security programme, promising to provide rice, wheat and coarse grain at Rs 3, 2 and 1 a kg, respectively, the charge levied on Uttarakhand seems unfeeling and an imposition.

Officials say the cost is bound by a 2000 Cabinet decision that economic costs will be levied, but this could easily have been got around by a fresh order dealing with the Uttarakhand situation. 

The UPA government had in January allocated 25,800 tonnes of additional rice and wheat to UP government for distribution at the Kumbh Mela at rates applicable for below poverty line population — rice at Rs 5.65/kg and wheat at Rs 4.15/kg. 

UP is not the only case where the UPA government made a concession. In fact, on June 12 the Centre allocated 3.27 lakh tonnes of rice and wheat to Maharashtra for drought relief at minimum support price (MSP) cost, which is almost half of the economic cost. 

Even an earlier additional allocation made to Uttarakhand for the ill-fated Char Dham yatras was at an economic cost. The government had sanctioned 1,000 tonnes each of rice and wheat on June 7 for the pilgrims. 

The food and consumer affairs ministry says there is nothing unusual about the cost levied as any additional allocation made to states has to be on economic cost. The exception in case of Maharashtra was due to a decision was taken by the Union Cabinet. 

In case of Kumbh Mela relief, the BPL rate was applicable as 12 years ago the then government had taken a decision to subsidize the entire additional allocation. 

"As per Cabinet's decision dated February 8, 2000, additional allocation for festivals and relief in case of natural calamities can be given at economic cost or open sale rates, whichever is less," said K Satish Nambudiripad, private secretary to the minister of state for food and consumer affairs. 

He said Uttarakhand was allotted foodgrain at economic cost because the open market sale scheme was not in application when the special allocation was made.

Source: The Times of India, DT. July 19, 2013.