Lok Sabha Question No. 2205 (UNSTARRED), answered on 2016-11-29
Subject: Food Subsidy in Cash
Ministry: CONSUMER AFFAIRS, FOOD AND PUBLIC DISTRIBUTION
Asked by: NISHIKANT  DUBEY, HUKUM SINGH

## GOVERNMENT OF INDIA

## MINISTRY OF CONSUMER AFFAIRS, FOOD & PUBLIC DISTRIBUTION

## DEPARTMENT OF FOOD AND PUBLIC DISTRIBUTION

## LOK SABHA UNSTARRED QUESTION NO. 2205 TO BE ANSWERED ON 29 TH  November, 2016 FOOD SUBSIDY IN CASH

2205. SHRI NISHIKANT DUBEY: SHRI HUKUM SINGH:

Will  the  Minister  of  CONSUMER  AFFAIRS,  FOOD  AND  PUBLIC

DISTRIBUTION miHkksDrk ekeys] [kk| vkSj lkoZtfud forj.k ea=h be pleased to state:

- (a) whether the Government has implemented the scheme of providing food  subsidy  in  cash  into  the  bank  account  of  entitled  households  to enable them to purchase foodgrains from the open market in the country and if so, the details thereof and if not, the reasons therefor;
- (b) whether  the  Direct  Benefit  Transfer(DBT) regime  for  delivering subsidies to the targeted populations has so far centered around cooking gas and to some extent on isolated pilot experiments with food subsidy
- and if so, the details thereof;
- whether  agricultural  subsidies,  especially  on  inputs  other  than fertilizers,  have  largely  escaped  attention  in  the  DBT  scheme,  and  if  so,
- (c) the details thereof and the reasons therefor; and
- (d) whether  any proper evaluation  of the efficacy of these input subsidies has been undertaken, and if so, the details thereof?

## A N S W E R

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

(a): Yes Sir. Direct Benefit Transfer (DBT) is being implemented on pilot basis in UTs of Chandigarh and Puducherry w.e.f. September 2015 and it has been partially implemented in Dadra & Nagar Haveli from 01.03.2016 as per the 'Cash Transfer of Food Subsidy Rules, 2015', which was notified on 21-082015, under the National Food Security Act, 2013. The Rules stipulate that the DBT  scheme  shall  be  implemented  in  identified  areas  for  which  there  is a written consent of the State Government for implementation of the Scheme. Section (5) of the Rules stipulate that the amount of food subsidy payable to beneficiaries shall be computed by multiplying entitled quantity of foodgrains with difference between 1.25 times applicable Minimum Support Price (MSP) and the Central Issue Price (CIP) or as may be revised from time to time by the Central Government. Since the amount of cash transfer is linked to MSP, per unit cash transfer will increase with the annual increase in MSP.

- (b): State/UT wise coverage of Targeted population of PDS beneficiaries is  defined  under  National  Food  Security  Act  (NFSA)  2013.    Based  on  the coverage  and  rules  defined  in  NFSA,  all  three  UTs  have  identified  entitled beneficiaries under AAY and PHH categories for transferring food subsidies amount into their bank accounts.
- (c): As  informed  by  Dept.  of  Agriculture,  Cooperation  and  Farmers Welfare, the schemes identified for on-boarding of DBT  for its beneficiaries amongst others are seed distribution by the dealers to farmers, Machinery and Tools,  capacity  building,  interest  subsidy  for  short-term  credit  to  farmers, crop insurance and agriculture cooperation.
- (d): As  per  the  provisions  of  the  'Cash  Transfer  of Food  Subsidy  Rules, 2015', concerned UTs  have been suitably instructed to evaluate the effectiveness of the DBT scheme.

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