How does the government deliver cheap food grains from village to village by buying expensive, what is the mathematics of its price. Will the government increase the rate of subsidized wheat-rice? . Know everything
What is the cost of subsidized wheat and rice?
Do you know how much it costs to get 2-3 rupees per kg of grain under the Public Distribution System (PDS)? The government brings you 2 rupees of wheat and 3 rupees of rice to your village, but you never guess how much money is spent on it. We give you this information. The government spends Rs 42.94 per kg on rice that reaches you at a nominal expense. While Rs 29.94 on wheat.
The government procured common paddy from the farmers at the minimum support price (MSP) of Rs 1868 per quintal in the Kharif marketing season 2020-21. Whereas Rabi is buying wheat at MSP of Rs. 1975 per quintal in marketing season 2021-22. Then why do the cost increases considerably by coming to the villages. There is a need to understand its mathematics.
Mathematics of the price of wheat and rice on PDS
It is standard to release 60 kg of rice on the back of paddy per quintal. That means 60 kg of rice for 1868 rupees. In this way, rice was purchased from farmers at the rate of 31 rupees per kg. But by coming to you in the PDS, its economic cost increased to 42.94 rupees per kg. This means that the government spent Rs 11.94 per kg on its maintenance and transportation. Similarly, about 10 rupees per kilo was spent on the maintenance and transportation of wheat.
Then how do you get 2-3 rupees a kilo?
You would think that after spending so much money, how does the government give you 2-3 rupees a kilo? According to food safety expert Sandeep Das, the government compensates for this with food subsidy of more than 2 lakh crores. If this is not done then the poor do not know what happens. The government is currently giving cheap food grains to 80 crore people. So cheap that even a cup of tea is not available.
According to Das, through this, farmers get money in the form of MSP and the poor get food grains. To provide food grains to the poor, the government is increasing procurement from farmers on MSP. One more thing is that if the farmers of our country are producing, then the government is able to reach the poor. If we had to import, it might not have been so easy.
How much food subsidy this year
Finance Minister Nirmala Sitharaman had said in the budget that there is a provision of Rs 2,42,836 crore for food subsidy in the financial year 2021-22. While there was a tremendous increase in food subsidy during 2020-21, it stood at Rs 4,22,618.14 crore. Whereas in the budget of 2020-21, there was an allocation of Rs 1,55,966 crore for food subsidy. During the Corona period, there was a considerable increase in free grain.
The Act is helping the poor
In fact, the government passed the National Food Security Act-2013 to provide protection of food to the people and to live a dignified life. Under its Schedule-1, assistance was to be provided for a period of three years i.e. from 2016 till July 5 at the price of Rs 2-3 per kg fixed for wheat and rice. But this matter was reviewed from time to time. Keeping in mind the interests of weaker sections of the society, the scheme of giving subsidized food grains was pushed forward. This facility is available on Ration card.
No change in price
At present, the government has no intention of amending the CIP-Central Issue Prices. That is, till the next order, 80 crore people will continue to get 2 rupees of wheat and 3 rupees of rice. However, in the Economic Survey presented this year, an amendment to the CIP was suggested to curb the rising food subsidy. There is a rule to revise the CIP after every five years. But it has not been revised even once.
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