Grains to cost cheaper

Allocation to cost the govt additional Rs 2,000 crore

GN Bureau | May 6, 2010



As wheat stocks bulge, the government will release 5,00,000 tonnes of additional grains at a discount for all ration card holders. A decision to this effect was taken by a panel of ministers on Wednesday, reports the Hindustan Times.

At the end of an hour-long meeting headed by Finance Minister Pranab Mukherjee on Wednesday, Agriculture Minister Sharad Pawar said, “The food situation is comfortable. So, we have decided to release more grains.” Subsidised grains are supplied through fair price shops to two types of card holders, those below poverty line (BPL) and above poverty line (APL).

The allocation will cost the government an additional Rs 2,000 crore, which will show up in the food subsidy bill of Rs 46,906.68 crore.

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