Beneficiaries In Puducherry Don’t Use Subsidy To Purchase Food Grain

Posted on: Apr-2018 | By: MarketDeeper | Food Service & Hospitality

The Union Food Ministry has received a request from the administration of Puducherry for crediting the subsidy to the beneficiaries’ bank accounts rather than the system distributing subsidized food grains. The administration of the Union Territory has stated that beneficiaries for buying food grains are not using the subsidy.

Food Grain Research

A food ministry official mentioned that Ram Vilas Paswan the Union Minister received a proposal from the Chief Minister. He further stated that the people are misusing the subsidy provided by the central government as the union territory administration. The decision is yet to be taken after a certain investigation on the issue raised by union territory. The official further stressed by questioning that DBT (Direct Benefit Transfer) is active by the Centre for food subsidy but the continued scheme of providing 10 kg free single boiled rice to every family each month by the administration of UT then people will not be interested in buying grains on subsidy rates.

In 2015, Chandigarh, Puducherry and Daman and Diu were chalked out for enjoying DBT for subsidized food grain. Later to analyze the impact of the subsidy a study was conducted in the following year which resulted in 88% of the beneficiaries in Puducherry and 70% in Chandigarh were disappointed by the amount entitled to them under food security scheme and stated that the amount credited to their account was not sufficient for each family on the purchase of 5kg food grain.

The officials from Food Ministry on receiving such feedbacks stated that the problem is arising as people are purchasing food grains as per their choice although previously they had no option or choice. In 2017, the Food Ministry to resolve the misuse started PDS a model to emulate “Direct Cooking Gas Subsidy Transfer Model” for food grain in Ranchi.

The beneficiaries under this model receive the amount of subsidy in their account from which they have to purchase food grains with the point-of-sale device from any shop. A food ministry official comments that there are positive and negative responses of the beneficiaries on this initiative by the Food Ministry.