20 lakh families to get cash under DBT scheme for buying food grains

Rural shop_SKB

Moneycontrol News

Maharashtra government will now initiate the Direct Benefit Transfer (DBT) scheme for food subsidy to enable ration card holders to purchase their choice of food grain from the market on a pilot basis.

This will also help the state government to cut down on costs involving transportation and handling of food grains.

The scheme will be launched for 20 lakh Antyodaya and priority household ration cardholders, in the cities of Mumbai and Thane, starting September.

Under this scheme, the government will transfer money into the bank accounts of families, so they can use it to buy food grains at market price. This practice is expected to replace the regular exercise of selling foodgrains at subsidised rate at ration shops.

As per a report by The Times Of India, this cash transfer is expected to reduce costs related to transportation of food grains from Punjab and Haryana and take subsequent action following complaints of the inferior quality of food grains that are supplied at ration shops.

According to The Food Security Act, the poorest families, holding Antyodaya card are entitled to 35 kg of grain at heavily subsidised rates per month under the Antyodaya scheme. DBT would be implemented on a pilot basis for approximately 20 lakh Antyodaya and priority household ration cardholders. However, the cash benefit option would be given for wheat and rice only.

Following this directive, the state government of Maharashtra may transfer cash into the bank accounts of beneficiaries for buying foodgrains of their choice from the market.

The people would have the option to go for DBT or subsidised rates at ration shops and inform about their choice to the public distribution system (PDS) operator. The cash amount would be 1.25 times the minimum support price (MSP) of food grains.

Due to the composition of diverse beneficiaries in Mumbai and Thane, the two locations have been selected for trial and depending on the outcome of the scheme, it would be implemented across the state.

Similar, to the process of gas subsidy, there would be a linkage of Ration cards, Aadhaar cards, and bank accounts.