Cabinet clears food ordinance; states to decide eligibility

The proposed ordinance on food security has been cleared at a meeting of the Union Cabinet on Wednesday after  it considered whether to go ahead with promulgating it or convene a special session of Parliament for its passage, reports CNBC-TV18. On June 13, the Cabinet had deferred the proposal amid differences on the issue.

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It is estimated that food outgo due to the Food Bill will stand at Rs 1.25 lakh crore for FY14. The additional food subsidy outgo is estimated at Rs 23,800 crore. The ordinance will cover 67 percent of the Indian population and will offer rice, wheat and coarse grains at Rs 3, Rs 2 and Rs 1 a kilo respectively.

The Bill is yet to be passed by the Lok Sabha and the Rajya Sabha and government will try to get the Bill through in the  Monsoon Session.

The food subsidy will be revised after three years and the state-wise coverage will be determined by the Planning Commission. The states are to decide on the eligibility criteria based on socio-economic and caste census data.

In a special dispensation for the poorest of the poor, the Antodaya Anna Yojana entitles 35 kg of grain per household with pregnant and lactating mothers to get Rs 1,000 per month for 6 months.

The ordinance also provides for regulation of fair price shops' margins be via specific norms.