Govt to increase rice subsidy given via DBT for next year

New Delhi: The Centre has decided to increase marginally the cash subsidy on rice to Rs 25.17 per kg to be given via DBT to PDS beneficiaries for the 2016-17 marketing year starting next month, Union Food Minister Ram Vilas Paswan said on Friday.

This was informed to Puducherry Chief Minister V Narayanasamy in a meeting here, where the state government voiced its concern about lower food subsidy given at present amid higher retail price.

Puducherry was the first to roll out Direct Benefit Transfer (DBT) of food subsidy under the Food Law. The other two Union Territories were Chandigarh and Daman & Diu.

"Puducherry has demanded increase in rice subsidy given under DBT taking into account the new MSP. We told them that we have already worked out the subsidy amount and will be notified soon," Paswan told reporters after the meeting.

The subsidy on rice has been increased to Rs 25.17 per kg for the 2016-17 marketing year starting next month from Rs 24.5 per kg this year, he said.

A subsidy of Rs 17.06 per kg is being given on wheat via DBT in the ongoing 2016-17 marketing year (April-March). This will be revised in March, he added.

Puducherry gives subsidy on rice under DBT to 6.15 lakh beneficiaries in the UT.

The Puducherry chief minister told media after the meeting, "retail price of rice is ruling at Rs 28 per kg. We have requested the centre to increase the rice subsidy given via DBT. The centre has assured it will be done."

The state government also discussed with the centre on possibility of going back to the earlier system of distributing subsidised grains via PDS.

The Centre has been asking other states to initiate a pilot programme to implement DBT for food subsidy. The government provides about Rs 1.30 lakh crore food subsidy annually.