Lok Sabha Question No. 2291 (UNSTARRED), answered on 2018-07-31
Subject: Food Subsidy under DBT Scheme
Ministry: CONSUMER AFFAIRS, FOOD AND PUBLIC DISTRIBUTION
Asked by: JAY PRAKASH NARAYAN YADAV, PARBHUBHAI NAGARBHAI VASAVA, PANKAJ CHOWDHARY, George Baker, BODH SINGH BHAGAT, ANIL SHIROLE

## GOVERNMENT OF INDIA

## MINISTRY OF CONSUMER AFFAIRS, FOOD & PUBLIC DISTRIBUTION

## DEPARTMENT OF FOOD AND PUBLIC DISTRIBUTION

## LOK SABHA

UNSTARRED QUESTION NO. 2291

TO BE ANSWERED ON 31 ST  JULY, 2018

## FOOD SUBSIDY UNDER DBT SCHEME

2291.

SHRI JAI PRAKASH NARAYAN YADAV:

SHRI PARBHUBHAI NAGARBHAI VASAVA:

SHRI PANKAJ CHAUDHARY:

SHRI GEORGE BAKER:

SHRI BODHSINGH BHAGAT:

SHRI ANIL SHIROLE:

Will the Minister of CONSUMER AFFAIRS, FOOD AND PUBLIC DISTRIBUTION miHkksDrk ekeys] [kk| vkSj lkoZtfud forj.k ea=h be pleased to state:

- the details of the subsidy to be given on ration to the poor during the financial year 2017-18, State-wise including wheat and rice at the rate of Rs. 2
- (a) and Rs. 3 per kg;
- whether  the  Government  has  formulated  any  plan  to  improve  the ration  system  under  the  National  Food  Security  Act  and  if  so,  the  details
- (b) thereof;
- whether  the  Government  plans  to  bring  food  subsidy  also  under Direct  Benefit  Transfer  Scheme  instead  of  giving  refund  to  the  poor  and providing  wheat,  rice,  if  so,  the  details  thereof  along  with  the  reasons
- (c) therefor;
- (d) whether the  Government has launched this  scheme  in  some  of  the on trial basis, if so, the details thereof along with the outcome thereof, State-wise including West Bengal;
- (e) the  number  of  States  which  have  adopted  schemes,  the  details thereof; and
- (f)  the time by which it is likely to be implemented across the country?

## A N S W E R

MINISTER OF STATE FOR  CONSUMER AFFAIRS, FOOD & PUBLIC DISTRIBUTION (SHRI C. R. CHAUDHARY)

(a): Government  has  enacted  National  Food  Security  Act  (NFSA)  under which the foodgrains are provided to the priority category @ 5 kg per person per  month  and  Antyodaya  Anna  Yojana  (AAY)  households  which  constitute the  poorest  of  the  poor  @  35kg  per  family  per  month  at  highly  subsidized prices of Rs.1/2/3 per kg for coarse grains/wheat/rice respectively. Although, subsidy given varies from State to State but on an average Rs. 21.96/Kg for Wheat  and  Rs.  29.94/Kg  for  Rice  is  given  as  food  subsidy  by  GoI  on distribution of foodgrains by the States.  Presently, the subsidy given to FCI and DCP States for last 3 years is annexed.

(b): Targeted  Public  Distribution  System  (TPDS)  is  operated  under  the joint responsibility of the Central and State Government. Central Government is  responsible  for  procurement,  allocation  and  transportation  of  foodgrains upto the designated depots of the Food Corporation of India. The operational responsibility  for  allocation  of  foodgrains  within  the  States/UTs,  including distribution of foodgrains to the eligible beneficiaries under TPDS rests with the concerned State Government/UT Admn.

Under NFSA, the receipt of foodgrains by beneficiaries in time is a legal entitlement and therefore, it is imperative that State/Union Territory lift the foodgrains within the validity period and ensure its timely distribution to the  targeted  beneficiaries.  From  time  to  time  ,  State/UT  Governments  are requested  to  review  the  list  of  beneficiaries,  improving  the  offtake  of allocated foodgrains, ensuring timely availability of foodgrains at Fair Price shops  (FPSs), greater transparency in functioning of TPDS,  increased monitoring  and  vigilance  at  various  levels,  improving  the  viability  of  FPS operations, etc.

(c) to (f): The scheme of cash transfer of food subsidy is implemented as per provisions of the Cash Transfer of Food Subsidy Rules, 2015, notified under the National Food Security Act, 2013 (NFSA) which inter alia provides that the  scheme  can  be  taken  up  in  identified  areas,  subject  to  fulfilment  of certain conditions regarding preparedness for its implementation. Identified area is defined under the Rules as State or Union Territory or any specified area within the State or Union Territory for which there is a written consent of  the  State  Government  for  implementation  of  the  scheme.  It  is  therefore optional for the States/UTs to implement the cash transfer of food subsidy scheme or continue with distribution of foodgrains as per provision of NFSA

through fair price shops.

The  cash  transfer  of  food  subsidy  scheme  is  being  implemented  in the Union Territories of Chandigarh, Puducherry and urban areas of Dadra & Nagar  Haveli,  under  which  food  subsidy  is  being  transferred  into  bank accounts  of  beneficiaries  who  then  have  a  choice  to  buy  foodgrains  from open market.

Further, a pilot scheme of Direct Benefit Transfer on the pattern of 'PAHAL', has been started in Nagni Block of Ranchi District(Jharkhand) w.e.f. 01.10.2017  under  which  subsidy  component  is  credited  in  advance  into beneficiaries account and beneficiaries purchase foodgrains from fair price shops (FPS) at the Economic Cost of foodgrains.

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## ANNEXURE

## ANNEXURE REFERRED TO IN REPLY TO PART (a) OF THE UNSTARRED QUESTION NO. 2291 DUE FOR ANSWER ON 31.07.2018 IN THE LOK SABHA.

The details of food subsidy released during last three years including current year to FCI and DCP States  is as below:

- (I) Food Subsidy released to FCI:

(Rs. in crore) (As on 29.07.2018)

| Year                    | FCI         |
|-------------------------|-------------|
| 2015-16                 | 112000.00   |
| 2016-17                 | 103334.61*  |
| 2017-18                 | 101981.69** |
| 2018-19 (upto 29.07.18) | 91224.00    |

## (II) Food Subsidy released to DCP States & UTs under DBT scheme:

(Rs in crores)

| S.No.   | Name of the State   | 2015-16   | 2016-17   |   2017-18 |   2018-19 (till 29.07.18) |
|---------|---------------------|-----------|-----------|-----------|---------------------------|
| 1       | Andhra Pradesh      | 1364.25   | 3212.82   |   6060.17 |                   2598.18 |
| 2       | Bihar               | 2540.92   | 1495.24   |   4535.11 |                   1004.44 |
| 3       | Chhattisgarh        | 3328.93   | 3141.28   |   4272.36 |                   1933.27 |
| 4       | Gujarat             | 55.57     | 46.21     |      0    |                      9.31 |
| 5       | Karnataka           | 0.00      | 0.00      |    166.95 |                      0    |
| 6       | Kerala              | 834.42    | 419.25    |    782.06 |                    253.64 |
| 7       | Madhya Pradesh      | 5737.29   | 5354.97   |   8113.23 |                   3638.03 |
| 8       | Maharashtra         | -         | -         |    583.66 |                      0    |
| 9       | Odisha              | 3331.39   | 3847.72   |   5133.57 |                   2602.17 |
| 10      | Punjab              | 300.00    | 2877.68   |    796.33 |                    947.61 |
| 11      | Rajasthan           | 155.11    | 0.00      |      0    |                      0    |
| 12      | Tamil Nadu          | 936.89    | 2303.76   |    651.7  |                    256.43 |
| 13      | Telangana           | 1390.08   | 1716.71   |   3853.71 |                    854.5  |
| 14      | Uttarakhand         | 408.67    | 346.80    |    860.11 |                      0    |
| 15      | West Bengal         | 2465.86   | 2441.93   |   2042.3  |                   2363.22 |
| 16      | DBT*                | 69.62     | 133.97    |    148.74 |                     42.81 |
|         | योग Total           | 22919.00  | 27338.35  |  38000    |                  16503.6  |

* Under DBT scheme, w.e.f. 2015-16 subsidy is released to UTs of Chandigarh, Puducherry, Dadra & Nagar Haveli & 1 District of Jharkhand.

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