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Food reforms on the cards, subsidised grains may be limited to 40% of population only

New Delhi: Prime Minister Narendra Modi's office is looking to amend the National Food Security Act.PMO has asked for a plan to implement the recommendations of a top panel that has suggested sweeping food reforms

India TV News Desk India TV News Desk Updated on: February 02, 2015 9:51 IST
food reforms on the cards subsidised grains may be limited
food reforms on the cards subsidised grains may be limited to 40 of population only

New Delhi: Prime Minister Narendra Modi's office is looking to amend the National Food Security Act.

PMO has asked for a plan to implement the recommendations of a top panel that has suggested sweeping food reforms that include limiting subsidised grains to 40% of the population from the present 67%.

As per the reports the food ministry has been told to come out with “specific deadlines” for implementing the Shanta Kumar-led panel report.   

The PM-appointed panel submitted its reports on January 21 which favours a switch to a cash transfer based food subsidy system. According to reports in a leading daily, food ministry head by Ram Vilas Paswan is likely to meet on February 11 to start preparing the roadmap.

In the last budget, finance minister Arun Jaitley had announced an expenditure management commission to suggest comprehensive subsidy reforms, which, too, is likely to propose changes in food subsidy.

The government's spending on food in 2014 accounted for 18% of its fiscal deficit, which it is trying to curtail.

The panel has called for an end to operations of the leakage-prone Food Corporation of India in traditional food-bowl states and raising the price at which all categories of beneficiaries get subsidised grains to 50% of minimum support price, barring the poorest households.

Implementing all the reforms suggested by the panel could be fraught with political risks in a country where millions rely on state-subsidised food.

The government's view is that for high growth, India will need to slash subsidies and re-direct spending to infrastructure sector so that more people can join the workplace.

 

 

 

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