Food security bill to cost $21 bn: Report

The proposed food security bill will likely cost an annual Rs 1 trillion (USD 20.7 billion), the Financial Express quoted the food minister as saying, as the government looks to scale up production and storage of subsidised grain to feed more of the country's poor.

"Our food subsidy bill is around Rs 830 billion. It may go up to Rs 950 billion to Rs 1 trillion or thereabouts (under the bill)," K.V. Thomas, minister for consumer affairs, food and public distribution, told the newspaper.

The government has already approved an extra 15 million tonnes of additional storage capacity to be ready by 2012/13, Thomas said in the interview.

India has agreed a draft of the National Food Security Act, which will supply grains to around 67.5% of its 1.2 billion population and will likely ease voter anger at inflation, but widen the country's fiscal deficit.

An election promise by the ruling Congress party, the bill will likely be introduced in parliament later this year and be approved with little opposition.

($1 = 48.2 Indian Rupees)