Under DCP scheme, states undertake the responsibility of procurement of food grains, its storage and distribution under Targeted Public Distribution System (TPDS). The entire difference between the economic cost of food grains and Central Issue Price (CIP) is reimbursed to these states directly as food subsidy. This information was given by K V Thomas, minister for consumer affairs, food and public distribution system in a written reply in Lok Sabha on Tuesday.
The minister stated that as per the current policy, an advance subsidy covering 90% of the estimated requirement is released during every quarter based on estimates given by DCP states. At the end of the quarter, based on provisional estimates given by states, provisional subsidy at 100% of fixed costs (minimum support price, bonus and taxes) and 95% of variable costs (i.e. other remaining procurement incidentals) is released. The remaining actual subsidy is released based on the final audited statements submitted by DCP states.
The food subsidy allocated during the last three years and current year is as under:
(Rs in crore)
Subsidy allocated
58242.45
62929.56
72370.90
74551.99
Meanwhile in another written reply, the minister informed that with a view to offload surplus stocks in the Central Pool and increase availability in the market, the government has released 26.02 lakh tonnes of wheat for tender sale to bulk consumers and sale to small private traders from its godowns by FCI under Open Market Sale Scheme (Domestic) during July and August 2012.
