Ministers' panel clears draft Food Bill

An Empowered Group of Ministers (EGoM) today approved the draft Food Security Bill, which will provide highly subsidised wheat and rice to the poor as a matter of legal right.

The ministers' panel headed by Finance Minister Pranab Mukherjee cleared the flagship proposal of the UPA government which will provide foodgrains at a cheap rate to 75% of the rural population and 50% of those living in cities. Thus 68% of the country's total population will have the food security.

The states which have a crucial role in implementation of the programme will also be taken on board. The bill after being vetted by the Law Ministry would be before the chief ministers and after that will go to Parliament.

"Our intention is to place it before Parliament in the Monsoon Session," a source said after the EGoM meeting. Under the Bill which will give legal right to the beneficiaries for food, a quantity of 7 kg per month per person will be given to the 'priority sector' (Below Poverty Line). It will be provided at Rs 3 per kg for rice and Rs 2 per kg for wheat.

For the general category (Above Poverty Line) the food quantity will be 3-4 kg per person. The rate will be half of the minimum support price which the government pays to farmers.

The Food Security Bill, requiring 51 million tonnes of foodgrains will involve an additional subsidy outgo of Rs 13,000 crore, taking the total food subsidy to Rs 95,000 crore.

States which have a crucial role in implementation of the programme will also be taken on board, sources added.

The bill after being vetted by the law ministry would be placed before chief ministers and after that will go to Parliament.

"Our intention is to place it before Parliament in the Monsoon Session," a source said after the EGoM meeting.

Food Minister will meet the Finance Minister tomorrow to decided on the quantity for general households, sources said.

At present, the government provides 35 kg of wheat and rice to 6.52 crore BPL families and at least 15 kg to 11.5 crore families under above poverty line (APL).