Food Security Bill estimates subsidy of Rs 1.23 lakh cr

Implementation of the National Food Security Bill (NFSB), aimed at providing legal entitlement to food to around 67 percent of the population, is likely to cost the exchequer around Rs 1.23 lakh crore, the government said on Monday.

"As per the provision of the Bill, an estimated annual requirement of food-grain at 2011 population levels is 60.74 million tonne and the corresponding estimated food subsidy for 2013-14 costs is about Rs 1,23,084 crore," food minister KV Thomas said in a written reply to Rajya Sabha.

However, he added, the actual requirement would depend upon the final shape of the Bill and the time by which NFSB comes into force. Finance Minister P Chidambaram had allocated Rs 77,740 crore as food subsidy in the budget estimates for the current fiscal and kept Rs 10,000 crore over and above the normal food subsidy, towards the incremental cost.

The Bill was introduced in Lok Sabha in December, 2011, and then referred to a standing committee on food, consumer affairs and public distribution for examination.

"The standing committee has given its report. The report has been examined by the government in consultation with the states and UTs based on which the government proposes to move some amendment to it," Thomas said.

The proposed amendments in the Bill are mainly aimed at providing a simpler framework and more flexibility to the states besides lowering their financial burden. In the original Bill, introduced in the Lok Sabha in December 2011, the Centre had proposed 7 kg of rice or wheat or millet a month for priority category at Rs 3, Rs 2 and Re 1 per kg, respectively, while at least 3 kg per person per month for general households at 50 per cent of the support price.