The Centre has decided to launch its ambitious direct cash transfer plan to poor families under the Targeted Public Distribution System (TPDS) in the six Union Territories from April 1.
As reported by FE, the scheme will be first launched in six UTs? Chandigarh, Puducherry, Andaman and Nicobar Islands, Lakshadweep, Dadra and Nagar Haveli and Daman and Diu.
A senior official told FE that the food ministry has already intimated the concerned UTs to ensure that all beneficiaries under TPDS have bank accounts.
?We are not dismantling the existing TPDS; we will be transferring the difference between appropriate price (fixed by FCI) and market price of foodgrains to the beneficiary’s bank account,? Sudhir Kumar, secretary, department of food, said.
He said there are many poor families in the UTs who still do not have savings bank accounts. ?Banks have to gear up in the next few months to handle the cash transfer,? Kumar said.
For the rest of the country, the food ministry would adopt a ‘careful’ approach before implementing the scheme as it required ?logistical arrangements?.
?There are large number of poor families who do not have savings bank accounts, thus launching direct cash transfer for these families would be difficult across the country,? food minister KV Thomas said.
Under the pilot scheme, allocation of foodgrains (rice and wheat) under TPDS would be made at market rate or ‘appropriate cost’ instead of the existing central price.
?Cash subsidy will be provided to the beneficiaries in their bank accounts in advance to enable them to purchase the foodgrains from the fair prices shops,? the official said. However, foodgrains would continue to be allocated as per the present system for distribution through rations shops.
As many of UTs are yet to computerise their TPDS operations, the food subsidy component would be passed on to poor families? bank account on the basis of their past records. The central issue prices for rice and wheat had not been revised since July, 2002. At present, the Centre allocates common variety rice to states at a price of R5.65 per kg for BPL families and R3 a kg for Antyodaya Anna Yojana (AAY) families. In case of wheat, the issue price to states is only R4.15 a kg for BPL families and R2 for AAY families.
The government provides the subsidy to meet the difference between the cost of purchase of foodgrains (minimum support price and other administrative costs) and prices at which the grains are allocated to states for distribution under TPDS. This fiscal, the food subsidy bill is expected to cross Rlakh crore.
At present, the government supplies 35 kg rice and wheat every month at subsidised rates to 6.52 crore BPL and AAY families under TPDS. Apart from that, another 8 crore families under the APL category get subsidised foodgrains.
Allocations under the Above Poverty Line (APL) category are made depending upon the availability of stocks of foodgrains in the Central pool and past offtake.
