Centre to release Rs.4,800 crore of food subsidy to Chhattisgarh shortly

New Delhi: Centre will shortly release Rs.4,800 crore of food subsidy to the State of Chhattisgarh. This was informed by Shri Piyush Goyal Minister for Consumer Affairs, Food & Public Distribution,Railways and Commerce & Industry to the Chief Minister of Chhattisgarh in a meeting today.

During the meeting it was informed that procurement operations for the Central Pool including quantity to be procured is solely based on the MoU signed between Government of India, Food Corporation of India and the State Government concerned.

In the meeting discussion were also held regarding acceptance of 40 Lakh MT of surplus Rice in the State during KMS 2020-21.

It was clarified that the procurement operations for the Central Pool including quantity to be procured is based on the MoU signed between Government of India, Food Corporation of India and the State Government concerned.

As per the condition stipulated in the MoU, if any State gives bonus/financial incentive in direct or indirect form, over and above MSP and if the overall procurement of the State is in excess of the total allocation to the State made by Government of India under TPDS/Other Welfare Schemes, such excess quantity will be treated outside the Central Pool and will not be taken over by FCI/GoI.

During KMS 2020-21, media campaign with photograph of Hon’ble CM detailing an indirect incentive scheme of offering Rs. 10,000/- per acre to the farmers under Rajiv Gandhi Kisan Nyay Yojna (RGKNY), which is similar to bonus on procurement of paddy, has been brought to notice. Accordingly, the quantum of rice to be procured from Chhattisgarh for the Central Pool has been capped at 24 Lakh MT, which is equivalent to the quantity allowed in previous years.

On the issue of shortage of gunny bags, Government of India has already permitted State Government to utilize used jute bags for procurement of paddy as well as delivery of rice for the Central Pool stocks to be consumed within the State for PDS/OWS.

This permission was given in the month of October 2020, right at the inception of KMS 20-21.

Further, the request of the State Government for permitting them to allow to deliver surplus rice to FCI also in used bags, the Government of India has agreed to consider the matter in the right spirit.

Regarding release of admissible amount of food subsidy to the State, the claims received from the State Government have been processed and approximately Rs.4,800 crore will be released shortly.