At this programme rice is available at Rs 3 per kg and wheat at Rs. Reduction of PDS price for BPL and Antyodaya have caused further rise in size of food subsidy.
Producers and consumers are major beneficiary within the vulnerable section of the community.
Under the present system it is responsibility of the Central and State governments to ensure smooth flow of foodgrains and other commodities to consumers.
The Food Corporation of India (FCI), on behalf of the Central Government procures transports and stocks the grains in the central godowns (owned or hired).
In situations where market conditions are such that purchases fall short of requirements, Government would need to make purchases on the basis of best terms.
This may imports, open market purchases from secondary markets or through open tender purchases or purchase from farmers at a market determined above MSP.(xiv) Crop diversification is very import at the current stage of India’s agricultural development, given changing dietary patterns.
It is operated under joint responsibility of central and state governments. It was criticised that PDS failed to serve the rural poor. Special cards are issued to BPL families and food grains are sold to them at highly subsidised prices.
From April 1, 2002 allocation of foodgrains has increased to 35 kg per family per month. Continued rise in minimum support price and consequent rise in economic cost without commensurate rise in issue price has caused rice of food subsidy.
‘issue prices’ which are uniform for specified varieties or qualities of grains all over India.
The issue prices are generally lower than the economic costs of the procured grains where economic costs include procurement prices, procurement incidences and distribution incidentals.