The Food security bill may be introduced in Parliament during the monsoon session, as

RELATED ARTICLES Bill seeking interest rate cap on MF lending introduced in Lok Sabha DTC Bill to be introduced in monsoon session: Pranab

food ministry has completed the final draft of the National food security bill. According to it, the universal food law would require nearly 62 million tonne food grains annually and incur the exchequer a subsidy cost of Rs 94,487 crore on its first year.

“We have upheld most of the recommendations of the National Advisory Council and the draft will now be discussed with UPA chairperson Sonia Gandhi,” food minister KV Thomas told Financial Chronicle on Wednesday.

“Instead of a 90 per cent rural coverage recommendation of the NAC, we had agreed to 75 per cent coverage. The priority sector would be covered as recommended with 46 per cent of them covered and a seven kg grain allotment per month. Among the urban poor, fifty per cent would be covered as recommended, but instead of five kg grains per month, we could give families three kilo grains per month,” he added.

Asked if the move is now finalised, the minister said the law ministry is yet to vet the food ministry draft, and it also requires an ascent from the cabinet. “I am quite confident that by the winter session, we would be able to pass the bill and subsequently put it to implementation from April onwards, next year,” Thomas said. In its assessment, the food ministry had assumed a 100 per cent off take by beneficiaries. Food grain off take by states have not gone significantly up beyond 80 per cent for targeted public distribution schemes, and just about 40 per cent of additional grain allocations made by the government.

To implement the scheme in totality, the government would need to bank on available storage space of nearly 60 million tonne available in the country and may also include direct cash transfer to beneficiaries at a later stage.

“To avoid diversion of this cash, we have proposed to include women as the head of the family whose bank would be credited,” he said.