By IANS,
New Delhi : The government Thursday decided to double its subsidy on imported pulses supplied through the public distribution system from the existing Rs.10 per kg to Rs.20 per kg.
The govenment also approved continuation of a ban on edible oil export from this month and its supply at Rs.15 per kg under a subsidy scheme.
The production of both pulses and edible oil seeds has been hit this year due to deficit monsoon.
The subsidised pulses scheme benefits public distribution system (PDS) card holders from the below poverty line (BPL) category.
“The Cabinet Committee on Economic Affairs gave its approval for introducing a variant of the earlier scheme for subsidised distribution of imported pulses through the PDS to below poverty line card holders,” Finance Minister P. Chidambaram said after the panel met under Prime Minister Manmohan Singh’s chairmanship in the evening.
The subsidy element of Rs.20 per kg on imported pulses would be paid to designated importing agencies up to a maximum of the number of BPL card holders, Chidambaram said.
“The approval of the scheme would help in making available pulses, a critical protein requirement of the vulnerable section of society – BPL card holders – at subsidised rates. This will provide cushion to the vulnerable sections of society against any significant increase in the prices of pulses,” he said.
The new scheme is in the form of an interim arrangement to tide over the possible spike in prices of pulses. This scheme will be in operation till March 31, 2013 and a decision regarding its continuation will be taken early next year.
Imports are to be undertaken by the designated state-owned agencies which would directly enter into contracts with states and union territories for supply of imported pulses to be distributed under the PDS.
States and union territories will monitor and ensure that the distribution strategy enables the subsidy benefit reachs the targeted population.
The scheme for subsidised distribution of imported pulses through the PDS with a provision of Rs.10 per kg as subsidy element was introduced in 2008.
“The benefits under the scheme had been availed by a few states. In view of the currently anticipated fall in the production of pulses coupled with the uncertainty in the availability of pulses in the international market, the need to protect the interests of BPL population has given rise to the present proposal,” Chidambaram said.
The committee, in a separate decision, approved continuing the ban on export of edible oils, with certain exemptions, from this month till further orders.
It also approved extension of the scheme for distribution of subsidised imported edible oils through states and union territories from this month to Sep 30 next year, with central subsidy of Rs.15 per kg for import of up to a million tonnes of edible oils during the period.
Among the other decisions were permission to export edible oils in branded consumer packs of up to 5 kg with a ceiling of up to 20,000 tonnes a year from this month to meet the increasing demand from Indians living abroad.