BUSINESS

AP re-introduces Rs 2-a-kg rice scheme

By Syed Amin Jafri in Hyderabad
April 09, 2008 16:52 IST

The Andhra Pradesh government has re-launched the Rs 2-a-kg rice scheme for below-poverty-line (BPL) families in the State from Wednesday, coinciding with Ugadi, the Telugu New Year Day that was celebrated two days ago. 

Chief Minister Dr Y S Rajasekhar Reddy formally inaugurated the scheme at Jadcharla in backward Mahbubnagar district on Wednesday even as his ministerial colleagues, Congress legislators and MPs kick-started the sale of subsidized rice to BPL families through fair price shops across the State.

Legislators of other parties, too, participated in the launch in their respective constituencies. In all, about 42,000 fair price shops are networked to sell the subsidized rice.

Originally introduced by the then Telugu Desam government led by N T Rama Rao on Ugadi day in April 1983, the Rs 2-a-kg rice scheme was subsequently scrapped by the Congress regime that raised the price to Rs 3.50 per kg in 1992. Later, NTR re-introduced the Rs 2-a-kg rice scheme in January 1995 on regaining power in 1994 elections.

NTR's son-in-law, N Chandrababu Naidu, who ousted him from power in 1995, scrapped Rs 2-a-kg scheme in July 1996 and raised the price to Rs 3.50 a kg. The price was raised further to Rs 5.25 per kg in the year 2000.

The Rs 2-a-kg scheme has been revived after a gap of 12 years. Speaking on the occasion, the chief minister said that the scheme would provide 'food security' and blunt the effects of a price rise for poor sections in the State. In all, about 1.85 crore (18.5 million) BPL families holding white ration cards would benefit from the scheme. The state government has earmarked Rs 1,980 crore (Rs 19.80 billion) for the scheme in the budget for 2008-09.

"The scheme will benefit 6.51 crore (65.1 million) persons out of the state's total population of 8.22 crore (82.2 million) now. We are trying to bring back Indiramma Rajyam (late Indira Gandhi's rule) in the State in letter and spirit. Our main focus is welfare of the people, particularly the poor," Dr Reddy said and added that the government would provide 4 kg of rice per head, subject to a maximum of 20 kg per family per month, under the scheme.

The cheap rice scheme is being implemented at a time when the open market price of rice has swelled to Rs 13 a kg. Such a huge difference between the subsidized price and the market rate gives scope for diversion into the black market. But the government has taken all measures to ensure that there is no pilferage at any level.

Civil Supplies Minister Kasu Venkata Krishna Reddy said that about 340,000 ton of rice per month would be required for the scheme. The government is working out the modalities for conducting regular social audit on the quality, timely delivery and other aspects of the scheme. Integrated flying squads would be constituted at the district level.

To check diversion of subsidized rice stocks to open market by fair price shop dealers or others, the government has constituted committees at the state and district level to continuously monitor the implementation of the scheme. A special cell headed by a senior IPS officer is being  set up to supervise the implementation of the scheme. District collectors are entrusted the task of monitoring the scheme.

The Vigilance and Enforcement Cell of Civil Supplies Department is tasked to undertake regular physical inspection of stocks. Check-posts are being opened to thwart illegal movement of rice stocks. Strict surveillance is being mounted on supply and transportation of rice on a day-to-day basis.

The department is opening toll-free telephone lines to be manned by special cell at the state level and wings headed by joint collectors at the district level to receive complaints and to ensure smoother operation of the scheme.

Syed Amin Jafri in Hyderabad

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