Rs.180-cr. additional subsidy estimated for rice

Hyderabad, October 17: The Civil Supplies department has estimated an additional subsidy requirement of Rs.180 crore to meet the difference of subsidy for 2.25 lakh tonnes of rice under the Rs. 2-a-kg scheme in the rest of the financial year.

The estimate was made after the Cabinet on Thursday decided to permit the department to purchase 2.25 lakh tonnes of rice for public distribution system (PDS) from rice millers at procurement price fixed by the Food Corporation of India. The department was also permitted to draw the funds from the budget provisions for the rice scheme during the year, a press release of Civil Supplies Commissioner Sanjay Jaju said. It said that the subsidy to be borne by the State went up from Rs. 7 a kg to Rs. 15 a kg for 2.25 lakh tonnes of rice after the Centre reallocated the quota to the State for above poverty line (APL) and below poverty line (BPL) families.

–Agencies–